    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Veterans Affairs]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 2002

                         DEPARTMENT OF VETERANS AFFAIRS

        The 2002 budget provides $23,378 million in discretionary funding
    for veterans health, benefits, and other services, including $23,998
    million in gross discretionary budget authority and $620 million in
    anticipated discretionary medical collections.

        This funding level recognizes that an estimated $235 million of
    current medical care liabilities will shift to the Department of Defense
    due to new benefits available to military retirees over age 64.

        The account by account information provided in the following budget
    schedules is supplemented by a department-wide strategic plan, published
    in September 2000, a performance plan submitted annually with the
    Budget, and an annual performance report. The performance plan contains
    annual goals for each of the Department of Veterans Affairs' (VA)
    programs along with historic performance data, where available. The plan
    highlights approximately 35 key measures that VA's top executives
    consider critical to the success of the Department. The performance
    report includes actual program performance as measured against goals.

                         VETERANS HEALTH ADMINISTRATION

                                  Federal Funds

    General and special funds:

                                  Medical Care

                          (including transfer of funds)

        For necessary expenses for the maintenance and operation of
    hospitals, nursing homes, and domiciliary facilities; for furnishing, as
    authorized by law, inpatient and outpatient care and treatment to
    beneficiaries of the Department of Veterans Affairs, including care and
    treatment in facilities not under the jurisdiction of the department;
    and furnishing recreational facilities, supplies, and equipment;
    funeral, burial, and other expenses incidental thereto for beneficiaries
    receiving care in the department; administrative expenses in support of
    planning, design, project management, real property acquisition and
    disposition, construction and renovation of any facility under the
    jurisdiction or for the use of the department; oversight, engineering
    and architectural activities not charged to project cost; repairing,
    altering, improving or providing facilities in the several hospitals and
    homes under the jurisdiction of the department, not otherwise provided
    for, either by contract or by the hire of temporary employees and
    purchase of materials; uniforms or allowances therefor, as authorized by
    5 U.S.C. 5901-5902; aid to State homes as authorized by 38 U.S.C. 1741;
    administrative and legal expenses of the department for collecting and
    recovering amounts owed the department as authorized under 38 U.S.C.
    chapter 17, and the Federal Medical Care Recovery Act, 42 U.S.C. 2651 et
    seq., [$20,281,587,000] $20,979,742,000, plus reimbursements[: Provided,
    That of the funds made available under this heading, $900,000,000], of
    which $675,000,000 is for the equipment and land and structures object
    classifications only, which amount shall not become available for
    obligation until August 1, [2001] 2002, and shall remain available until
    September 30, [2002: Provided further, That of the funds made available
    under this heading,] 2003; of which not to exceed [$500,000,000]
    $900,000,000 shall be available until September 30, [2002: Provided
    further, That of the funds made available under this heading, not to
    exceed $28,134,000 may be transferred to and merged with the
    appropriation for ``General operating expenses''] 2003; and of which, in
    addition to other funds made available under this heading for non-
    recurring maintenance and repair (NRM) activities, $30,000,000 shall be
    available without fiscal year limitation to support the NRM activities
    necessary to implement Capital Asset Realignment for Enhanced Services
    (CARES) activities: Provided, That from amounts appropriated under this
    heading, additional amounts, as designated by the Secretary no later
    than September 30, 2002, may be used for CARES activities without fiscal
    year limitation: Provided further, That the Secretary of Veterans
    Affairs shall conduct by contract a program of recovery audits for the
    fee basis and other medical services contracts with respect to payments
    for hospital care; and, notwithstanding 31 U.S.C. 3302(b), amounts
    collected, by setoff or otherwise, as the result of such audits shall be
    available, without fiscal year limitation, for the purposes for which
    funds are appropriated under this heading and the purposes of paying a
    contractor a percent of the amount collected as a result of an audit
    carried out by the contractor: Provided further, That all amounts so
    collected under the preceding proviso with respect to a designated
    health care region (as that term is defined in 38 U.S.C. 1729A(d)(2))
    shall be allocated, net of payments to the contractor, to that region.
        In addition, in conformance with Public Law 105-33 establishing the
    Department of Veterans Affairs Medical Care Collections Fund, such sums
    as may be deposited to such Fund pursuant to 38 U.S.C. 1729A may be
    transferred to this account, to remain available until expended for the
    purposes of this account.
        [None of the foregoing funds may be transferred to the Department of
    Justice for the purposes of supporting tobacco litigation.] (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          51          60          60
        Receipts:
    02.20 Medical care collections..........         573
    02.21 MCCF first party collections......                     203         207
    02.22 MCCF third party collections......                     405         413
    02.23 Pharmaceutical copayments.........                                 120
    02.24 Enhanced-use lease proceeds.......                                   1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         573         608         741
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         624         668         801
        Appropriations:
    05.00 Medical care......................        -564        -608        -741
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -564        -608        -741
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          60          60          60
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
              Provision of veterans health
                  care:
    00.01       Acute hospital care.........       4,806       5,277       5,661
    00.02       Rehabilitative care.........         363         381         394
    00.03       Psychiatric care............       1,132       1,186       1,223
    00.04       Nursing home care...........       1,807       1,940       2,106
    00.05       Subacute care...............         347         325         303
    00.06       Residential care............         357         391         424
    00.07       Outpatient care.............       8,328       9,440       9,838
    00.08       Miscellaneous benefits and
                  services..................         988       1,039       1,109
    00.09     CHAMPVA.......................         125         142         172
                                               ---------   ---------  ----------
    00.91       Total operating expenses....      18,253      20,121      21,230
            Capital investment:
              Provision of veterans health
                  care:
    01.01       Acute hospital care.........         298         283         252
    01.02       Rehabilitative care.........          21          21          18
    01.03       Psychiatric care............          61          64          54
    01.04       Nursing home care...........          61         104          94
    01.05       Subacute care...............          18          18          13
    01.06       Residential care............          15          21          19
    01.07       Outpatient care.............         460         508         437
    01.08       Miscellaneous benefits and
                  services..................          28          56          49
    01.09     CHAMPVA (GPRA)................           2
                                               ---------   ---------  ----------

    [[Page 882]]

    01.91       Total capital investment....         964       1,075         936
                                               ---------   ---------  ----------
    01.92     Total direct program..........      19,217      21,196      22,166
    09.01 Reimbursable program..............         110         119         127
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      19,327      21,315      22,293
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,082       1,324         941
    22.00 New budget authority (gross)......      19,572      20,929      21,848
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                       3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      20,654      22,256      22,792
    23.95 Total new obligations.............     -19,327     -21,315     -22,293
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............       1,324         941         499
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      19,006      20,282      20,980
    40.25   Appropriation (MCCF, indefinite)         564         608         620
    40.75   Reduction pursuant to P.L. 106-
              113...........................         -80
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                     -46
    41.00   Transferred to other accounts...         -28         -34
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      19,462      20,810      21,600
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite) Health Services
              Improvement Fund).............                                 121
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         110         119         127
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      19,572      20,929      21,848
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       2,572       2,448       3,034
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       2,572       2,448       3,034
    73.10 Total new obligations.............      19,327      21,315      22,293
    73.20 Total outlays (gross).............     -19,359     -20,726     -21,859
    73.40 Adjustments in expired accounts
            (net)...........................         -91
    73.45 Recoveries of prior year
            obligations.....................                      -3          -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       2,448       3,034       3,465
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       2,448       3,034       3,465
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      16,476      17,722      18,592
    86.93 Outlays from discretionary
            balances........................       2,883       3,004       3,158
    86.97 Outlays from new mandatory
            authority.......................                                 109
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      19,359      20,726      21,859
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -47         -51         -54
    88.40     Non-Federal sources...........         -63         -68         -73
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -110        -119        -127
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      19,462      20,810      21,721
    90.00 Outlays...........................      19,250      20,607      21,732
    ---------------------------------------------------------------------------

        For 2002, the budget process provides total resources for the VA
    Medical Care program of $21.7 billion, an increase of $1 billion ($0.8
    billion in medical care and $0.2 billion in collections) over the 2001
    level. This includes $21.0 billion in appropriated budget authority,
    $620 million to be collected in the Medical Care Collections Fund, $121
    million in anticipated collections from the Health Services Improvement
    Fund, and other available resources.

        The Veterans Millennium Health Care and Benefits Act, Public Law
    106-117, established the Health Services Improvement Fund. This fund
    serves as a depository for amounts received or collected under the
    following areas as authorized by 38 U.S.C. 1729B: (1) reimbursement from
    DoD for TRICARE--eligible military retirees; (2) enhanced-use lease
    proceeds; and (3) receipts attributable to increase in medication
    copayments. Amounts in the fund are intended to be used: (1) to furnish
    medical care services; and (2) for VA expenses for identification,
    billing, auditing, and collections of amounts owed the Government. These
    funds are available without fiscal year limitation.

                                    WORKLOAD

        Provision of Veterans Health Care--
            Acute hospital care.--Costs for 2002 are estimated to increase
        by $356 million for operating medical, neurological, surgical,
        contract and State home hospital beds, reflecting the shift to
        increased use of ambulatory care.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
      Patients treated..................     423,570     415,357     408,387
      Average daily census..............       7,948       7,713       7,591
      Average employment................      51,082      49,323      47,897

            Rehabilitative care.--An increase of $10 million in 2002 is
        estimated for the provision of rehabilitative care, including spinal
        cord injury care.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
      Patients treated..................      14,837      14,095      13,531
      Average daily census..............       1,174       1,104       1,038
      Average employment................       4,482       4,220       3,960

            Psychiatric care.--An increase of $28 million is estimated in
        2002 for the inpatient care of veterans with problems related to
        mental illness, including alcohol and drug problems.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
      Patients treated..................     102,354      96,213      92,364
      Average daily census..............       4,517       4,200       3,900
      Average employment................      14,846      13,835      12,846

            Nursing home care.--In 2002, an increase of $156 million is
        estimated for the care of residents in VA nursing homes, contract
        nursing homes and State nursing homes.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
      Patients treated..................      84,136      83,276      84,733
      Average daily census..............      30,740      31,632      33,391
      Average employment................      20,081      20,440      20,766

            Noninstitutional extended care.--Included in outpatient
        estimates in 2002 is an increase of $43 million estimated for
        noninstitutional extended care programs such as adult day care; home
        based primary care, skilled nursing and rehabilitation care; and
        home health aids.
            Estimated operating levels are:
                                         2000 actual  2001 est.   2002 est.
    Average daily census................      21,582      23,546      28,812

            Subacute care.--A decrease of $28 million is estimated in 2002
        for the treatment of veterans who require a level of care between
        acute and long-term care, as provided in VA hospital intermediate
        bed sections.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
    Patients treated....................      44,097      37,482      33,500
    Average daily census................       1,977       1,582       1,345
    Average employment..................       4,881       3,907       3,322

            Residential care.--An increase of $31 million is estimated in
        2002 for the care of veterans in locations other than their own
        homes, such as residential rehabilitation and domiciliary care
        programs.

    [[Page 883]]

            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
    Patients treated....................      48,876      48,007      48,044
    Average daily census................      10,407      10,763      11,120
    Average employment..................       4,628       4,643       4,718

            Outpatient care.--An increase of $330 million is estimated in
        2002 for the cost of outpatient medical and dental care provided by
        staff, physicians, and dentists participating under a fee basis
        arrangement for certain eligible veterans.
            Estimated operating levels are:

                  NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS

                                         2000 actual  2001 est.   2002 est.
      Medical visits (in thousands):
      Staff visits......................      36,448      37,699      37,600
      Fee visits........................       1,922       2,120       2,184
      Readjustment counseling...........         896         850         850
                                        ------------------------------------
            Total.......................      39,266      40,669      40,634
                                        ====================================
      Dental:
        Staff:
          Examinations..................     292,396     293,000     293,000
          Treatments....................     143,880     144,000     144,000
                                        ------------------------------------
            Total.......................     436,276     437,000     437,000
                                        ====================================
        Fee: Cases completed............      12,049      12,650      12,650
                                        ====================================
      Average employment................      72,028      77,932      78,796
                                        ====================================

            Miscellaneous benefits and services.--An increase of $64 million
        is estimated in 2002 for the cost of this activity which includes
        items of nondirect medical care and treatment such as beneficiary
        travel, care of the dead, operation of personnel quarters at medical
        facilities, and the cost of furnishing supply, engineering,
        housekeeping, and other administrative support services to other
        departments on a nonreimbursable basis.

                                         2000 actual  2001 est.   2002 est.
      Average employment................       7,312       7,020       6,809

            Civilian health and medical program of the Department of
        Veterans Affairs (CHAMPVA).--An increase of $30 million is estimated
        in 2002 for private hospital and outpatient care for dependents and
        survivors of certain veterans.
            Estimated operating levels are:

                                         2000 actual  2001 est.   2002 est.
      Average daily hospital census.....         137         122         117
      Outpatient (in thousands).........   1,155,059   1,197,792   1,372,161
      Average employment................         180         180         186

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       6,950       7,352       7,598
    11.3      Other than full-time permanent         907         959         991
    11.5      Other personnel compensation..         857         906         936
                                               ---------   ---------  ----------
    11.9        Total personnel compensation       8,714       9,217       9,525
    12.1    Civilian personnel benefits.....       2,157       2,343       2,416
    13.0    Benefits for former personnel...          61          66          68
            Travel and transportation of
                persons:
    21.0      Employee travel...............          52          55          65
    21.0      Beneficiary travel............         114         123         123
    21.0      Interagency motor pool
                payments....................          16          16          17
    21.0      All other.....................          34          37          38
    22.0    Transportation of things........          22          26          27
    23.1    Rental payments to GSA..........          11          12          12
    23.2    Rental payments to others.......          62          65          69
    23.3    Communications, utilities, and
              miscellaneous charges.........         522         598         616
    24.0    Printing and reproduction.......          12          14          14
    25.2    Other contractual services......       1,730       2,068       2,165
            Medical care:
    25.6      Outpatient dental fees........          13          14          14
    25.6      Medical and nursing fees......         355         416         433
    25.6      Community nursing homes.......         202         223         261
    25.6      Contract hospitalization......         215         242         263
    25.6      Civilian Health and Medical
                Program of the Department of
                Veterans Affairs............         116         130         160
            Supplies and materials:
    26.0      Supplies and materials........       3,436       4,005       4,467
    26.0      Provisions....................          75          75          73
    31.0    Equipment.......................         687         775         606
    32.0    Land and structures.............         276         300         330
            Grants, subsidies, and
                contributions:
    41.0      Grants, subsidies, and
                contributions...............         318         343         369
    41.0      Grants to private
                organizations...............          15          31          33
    43.0    Interest and dividends..........           2           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..      19,217      21,196      22,166
    99.0  Reimbursable obligations..........         110         119         127
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      19,327      21,315      22,293
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......     178,462     180,372     178,154
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       1,058       1,128       1,146
    ---------------------------------------------------------------------------

                         Medical and Prosthetic Research

        For necessary expenses in carrying out programs of medical and
    prosthetic research and development as authorized by 38 U.S.C. chapter
    73, to remain available until September 30, [2002, $351,000,000] 2003,
    $360,237,000, plus reimbursements. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Operating expenses:
    00.01     Medical research..............         209         219         218
    00.02     Rehabilitation research.......          25          30          31
    00.03     Health services research......          41          43          45
    00.04     Cooperative studies research..          37          45          45
                                               ---------   ---------  ----------
    00.91       Total operating expenses....         312         337         339
            Capital investment:
    01.01     Medical research..............           7          12          12
    01.02     Rehabilitation research.......           2           3           3
    01.03     Health services research......           2           3           2
    01.04     Cooperative studies research..           2           4           4
                                               ---------   ---------  ----------
    01.91       Total capital investment....          13          22          21
                                               ---------   ---------  ----------
    01.92     Total direct program..........         325         359         360
    09.01 Reimbursable program..............          27          33          33
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         352         392         393
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          28          23          15
    22.00 New budget authority (gross)......         348         383         393
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         376         406         408
    23.95 Total new obligations.............        -352        -392        -393
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          23          15          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         321         351         360
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         321         350         360
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          27          33          33
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         348         383         393
    ----------------------------------------------------------------------------

    [[Page 884]]

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         110         102         119
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         110         102         119
    73.10 Total new obligations.............         352         392         393
    73.20 Total outlays (gross).............        -357        -375        -390
    73.40 Adjustments in expired accounts
            (net)...........................          -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         102         119         122
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         102         119         122
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         258         290         297
    86.93 Outlays from discretionary
            balances........................          99          85          93
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         357         375         390
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -27         -33         -33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         321         350         360
    90.00 Outlays...........................         329         342         357
    ---------------------------------------------------------------------------

        The Medical and Prosthetic Research account is an intramural program
    whose mission is to acquire knowledge and create innovations that
    advance the health and care of veterans and the Nation. Veterans health
    issues are addressed comprehensively in the following four program
    divisions:

        Medical Research.--Medical Research strives to understand the
    disease process so that efficient, rational interventions can be made to
    cure or alleviate the effects of disease. The program supports
    investigator-initiated research projects, the training of clinicians in
    basic and clinical research, and centers of excellence devoted to
    specific diseases. The research is done in areas particularly relevant
    to the veteran population--aging, chronic disease, mental illness,
    substance abuse, military occupations, and environmental exposures.

        Rehabilitation Research.--Rehabilitation Research is dedicated to
    the development and application of science and engineering to improve
    the care and quality of life for the physically disabled. The program
    supports investigator-initiated research projects, the training of
    clinicians and engineers in rehabilitation research, centers of
    excellence devoted to specific disabilities, and technology transfer.
    The research is done in areas particularly relevant to the disabled
    veteran population--aging, sensory loss, and trauma related illness.

        Health Services Research.--Health Services Research is directed
    toward improving the outcome effectiveness and cost efficiency of health
    care delivery for the veteran population. The program supports
    investigator-initiated research projects, the training of clinicians in
    applied clinical research, centers of excellence devoted to specific
    aspects of health care delivery, and service-directed projects
    addressing clinical management needs. The research focuses on the
    translation of research findings to clinical best practices for all
    veteran patients. Particular contributions are made in the areas of
    aging, substance abuse, health systems, and special populations.

        Cooperative Studies.--Cooperative Studies Research has recently been
    separated from the Medical Research and Health Services Research
    programs and is directed toward large multi-site clinical trials.
    Cooperative Studies supports the clinical trials with its own
    statistical support centers and its own FDA-approved pharmacy. The
    research determines the efficacy and cost effectiveness of new
    medications and new treatment strategies of direct benefit to the
    veteran population in the areas of aging, chronic disease, mental
    illness, special populations, and military occupations and environmental
    exposures.

        VA's Medical and Prosthetic Research programs are included in the
    Federal Science & Technology (FS&T) budget.

                         SUMMARY OF BUDGETARY RESOURCES

                            [In millions of dollars]

                                         2000 actual  2001 est.   2002 est.
    Medical and prosthetic research
    appropriation.......................         321         350         360
    Medical care appropriation..........         345         376         387
    Federal grants (NIH)................         356         349         351
    Other grants (voluntary agencies,
    private proprietary)................         148         150         151
                                        ------------------------------------
          Total budgetary resources.....       1,170       1,225       1,249
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          51          52          53
    11.3      Other than full-time permanent          89          90          91
    11.5      Other personnel compensation..           5           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         145         147         149
    12.1    Civilian personnel benefits.....          32          43          43
    21.0    Employee travel.................           2           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.5    Research and development
              contracts.....................         101         107         107
    26.0    Supplies and materials..........          31          36          35
    31.0    Equipment.......................          13          21          21
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         325         359         360
    99.0  Reimbursable obligations..........          27          33          33
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         352         392         393
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,779       2,976       2,907
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         235         270         260
    ---------------------------------------------------------------------------

           Medical Administration and Miscellaneous Operating Expenses

        For necessary expenses in the administration of the medical,
    hospital, nursing home, domiciliary, construction, supply, and research
    activities, as authorized by law; administrative expenses in support of
    capital policy activities, [$62,000,000] $67,628,000, plus
    reimbursements: Provided, That technical and consulting services offered
    by the Facilities Management Field Service, including project management
    and real property administration (including leases, site acquisition and
    disposal activities directly supporting projects), shall be provided to
    Department of Veterans Affairs components only on a reimbursable basis,
    and such amounts will remain available until September 30, [2001] 2002.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses: Integrated
            health care system
            administration..................          57          60          66
    00.02 Capital investment................           3           2           2
                                               ---------   ---------  ----------
    01.00   Total direct program............          60          62          68
    09.01 Reimbursable program..............           7           7           7
                                               ---------   ---------  ----------

    [[Page 885]]

    10.00   Total new obligations...........          67          69          75
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          67          69          75
    23.95 Total new obligations.............         -67         -69         -75
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          60          62          68
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           7           7           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          67          69          75
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          13          14          14
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          13          14          14
    73.10 Total new obligations.............          67          69          75
    73.20 Total outlays (gross).............         -66         -69         -74
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          14          14          14
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          14          14          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          64          62          67
    86.93 Outlays from discretionary
            balances........................           1           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          66          69          74
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.45   Offsetting collections (cash)
              from: Offsetting governmental
              collections from the public...          -7          -7          -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          60          62          68
    90.00 Outlays...........................          59          62          67
    ---------------------------------------------------------------------------

        Supervision and administration of VA's comprehensive and integrated
    healthcare system.--Central office staff elements provide executive
    direction for all Departmental medical and construction programs through
    program development, implementation, and the administration of policies,
    plans, and objectives. The Facilities Management Service Delivery Office
    will be directly reimbursed from organizations utilizing its services.
    The funding for tactical management and support activities is being
    aligned with organizations that directly utilize its services.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          35          37          41
    11.3      Other than full-time permanent           2           3           3
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          40          43          47
    12.1    Civilian personnel benefits.....           7           7           8
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons: employee travel......           1           1           2
    23.1    Rental payments to GSA..........           6           5           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           1           1
    31.0    Equipment.......................           2           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          60          61          68
    99.0  Reimbursable obligations..........           7           7           7
    99.5  Below reporting threshold.........                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          67          69          75
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         457         493         508
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          57          57          57
    ---------------------------------------------------------------------------

                         Medical Care Cost Recovery Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-5014-0-2-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

    Public enterprise funds:

                      Veterans Extended Care Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4032-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............                                  22
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.6)...................                                  22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  24
    23.95 Total new obligations.............                                 -22
    24.40 Unobligated balance carried
            forward, end of year............                                   2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                  24
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                  22
    73.20 Total outlays (gross).............                                 -22
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.                                   2
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year                                   2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  22
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                  -2
    ---------------------------------------------------------------------------

        This fund was authorized by the Millennium Health Care and Benefits
    Act P.L. 106-117 section 101(a) to credit collections for long-term care
    for utilization by VA of extended care services. VA anticipates $24
    million from this effort in 2002.

                        Medical Facilities Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4138-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.02 Reimbursable capital expenses.....           1           1           1
                                               ---------   ---------  ----------

    [[Page 886]]

    10.00   Total new obligations (object
              class 31.0)...................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           4           4
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6           5           5
    23.95 Total new obligations.............          -1          -1          -1
    24.40 Unobligated balance carried
            forward, end of year............           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           1           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           1
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           1
    73.10 Total new obligations.............           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1           1           1
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        This account provides funds for the operating expenses of VA medical
    facilities furnishing nursing home care to certain veterans in receipt
    of pensions. Title 38 provides that a veteran with no spouse or child
    will only receive $90 per month in pension beginning the third full
    month following the month of admission to VA furnished nursing home
    care. The difference between the $90 the veteran receives and the amount
    otherwise authorized is transferred to this fund from the Compensation
    and Pension account to assist in covering expenses at the facility
    furnishing the nursing care.

                         Canteen Service Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable operating expenses...         130         134         136
    09.02 Reimbursable direct operations....          87          88          90
    09.10 Reimbursable capital investment:
            Sales program: Purchase of
            equipment and leasehold.........           3           6           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         220         228         230
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          14          16
    22.00 New budget authority (gross)......         220         229         232
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         234         243         248
    23.95 Total new obligations.............        -220        -228        -230
    24.40 Unobligated balance carried
            forward, end of year............          14          16          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         220         229         232
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          25          26          23
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          25          26          23
    73.10 Total new obligations.............         220         228         230
    73.20 Total outlays (gross).............        -218        -231        -234
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          26          23          20
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          26          23          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         215         228         231
    86.98 Outlays from mandatory balances...           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         218         231         234
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -2          -2
    88.40     Non-Federal sources...........        -218        -227        -230
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -220        -229        -232
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -2           2           2
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          37          38          38
    92.02 Total investments, end of year:
            Federal securities: Par value...          38          38          38
    ---------------------------------------------------------------------------

        The Veterans Canteen Service was established to furnish, at
    reasonable prices, merchandise and services necessary for the comfort
    and well-being of veterans in VA medical facilities.

        Financing.--Operations will be financed from current revenues.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          40          39          40
    11.3    Other than full-time permanent..          22          26          27
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          62          65          67
    12.1  Civilian personnel benefits.......          15          15          16
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           1           2           2
    26.0  Supplies and materials............         137         139         139
    31.0  Equipment.........................           3           5           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         220         228         230
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......       2,933       3,010       3,025
    ---------------------------------------------------------------------------

             Special Therapeutic and Rehabilitation Activities Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4048-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Contracts.........................          24          26          26
    09.02 Education and training............           1           2           2
    09.03 Operating expenses................          13          12          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          38          40          40
    ----------------------------------------------------------------------------

    [[Page 887]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13          14          16
    22.00 New budget authority (gross)......          39          42          41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          56          57
    23.95 Total new obligations.............         -38         -40         -40
    24.40 Unobligated balance carried
            forward, end of year............          14          16          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          39          42          41
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           2           2           3
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           2           2           3
    73.10 Total new obligations.............          38          40          40
    73.20 Total outlays (gross).............         -37         -40         -39
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           2           3           4
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           2           3           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          37          40          39
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -39         -42         -41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -2          -2          -2
    ---------------------------------------------------------------------------

        This revolving fund, established pursuant to the Veterans Omnibus
    Health Care Act of 1976, Public Law 94-581, provides a mechanism for the
    furnishing of rehabilitative services to certain veteran beneficiaries
    who are receiving medical care and treatment from the Department of
    Veterans Affairs.

        Funds to operate the various rehabilitative activities and provide
    for the therapeutic work for remuneration for patients and members in VA
    health care facilities are derived from contractual arrangements with
    private industry or nonprofit entities. Public Law 102-54 authorizes VA
    to contract with any Federal agency, including VA, and authorizes the
    fund to cover the training, education, and travel costs of employees
    associated with the rehabilitative programs. This is a self-sustaining
    fund, and therefore no appropriation is required to support these
    activities.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4048-0-3-703    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          40             39            41             41
    0102  Expense...........................         -38            -38           -40            -40
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           2              1             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4048-0-3-703    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          15             17            19             22
            Investments in US securities:
    1106      Receivables, net..............           2              1             1              1
    1206  Non-Federal assets: Receivables,
            net.............................           2              2             2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          20             20            22             25
        LIABILITIES:
    2105  Federal liabilities: Other........           1              2             2              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              2             2              2
        NET POSITION:
    3300  Cumulative results of operations..          17             17            19             22
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          17             17            19             22
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          18             19            21             24
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4048-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................          35          36          37
    26.0  Supplies and materials............           2           2           1
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          38          40          40
    ---------------------------------------------------------------------------

                      Medical Center Research Organizations

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Operating expenses................         119         122         125
    09.02 Capital investments...............          14          14          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         133         136         140
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18          18          18
    22.00 New budget authority (gross)......         133         136         140
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         151         154         158
    23.95 Total new obligations.............        -133        -136        -140
    24.40 Unobligated balance carried
            forward, end of year............          18          18          18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         133         136         140
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............         133         136         140
    73.20 Total outlays (gross).............        -133        -136        -140
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         133         136         140
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -26         -26         -27
    88.40     Non-Federal sources...........        -107        -110        -113
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -133        -136        -140
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        These nonprofit corporations provide a flexible funding mechanism
    for the conduct of approved research at Department of Veterans Affairs
    medical centers. These organizations will derive funds to operate
    various research activities from Federal and non-Federal sources. No
    appropriation is required to support these activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................          83          85          87
    26.0  Supplies and materials............          34          35          36
    31.0  Equipment.........................          14          14          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         133         136         140
    ---------------------------------------------------------------------------

    [[Page 888]]

                                   Trust Funds

                        General Post Fund, National Homes

                          (including transfer of funds)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 General post fund, national homes,
            deposits........................          31          29          31
    02.40 General post fund, national homes,
            interest on investments.........           2           3           3
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          33          32          34
        Appropriations:
    05.00 General post fund, national homes.         -32         -32         -34
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Religious, recreational, and
            entertainment activities........          23          24          25
    00.02 Research activities...............           3           3           3
    00.03 Therapeutic residence maintenance.           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          27          28          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          45          50          54
    22.00 New budget authority (gross)......          32          32          34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          77          82          88
    23.95 Total new obligations.............         -27         -28         -29
    24.40 Unobligated balance carried
            forward, end of year............          50          54          59
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.27   Appropriation (trust fund,
              indefinite)...................          32          32          34
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           7           6           6
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           7           6           6
    73.10 Total new obligations.............          27          28          29
    73.20 Total outlays (gross).............         -28         -28         -29
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           6           6           6
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           6           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          26          25          24
    86.98 Outlays from mandatory balances...           3           3           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          28          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          32          34
    90.00 Outlays...........................          28          28          29
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          51          57          53
    92.02 Total investments, end of year:
            Federal securities: Par value...          57          53          55
    ---------------------------------------------------------------------------

        This fund consists of: gifts, bequests, and proceeds from the sale
    of property left in the care of the facilities by former beneficiaries;
    patients' fund balances; and, proceeds from the sale of effects of
    beneficiaries who die leaving no heirs or without having otherwise
    disposed of their estate. Such funds are used to promote the comfort and
    welfare of veterans at hospitals, nursing homes, and domiciliaries where
    no general appropriation is available. Public Law 102-54 authorizes
    compensation work therapy and therapeutic transitional housing and loan
    programs to be funded from the General Post Fund. In addition, donations
    from pharmaceutical companies, non-profit corporations, and individuals
    to support VA medical research are deposited into this fund. (38 U.S.C.
    chs. 83 and 85.)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................          10          11          12
    26.0  Supplies and materials............          11          11          11
    31.0  Equipment.........................           3           3           3
    32.0  Land and structures...............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          27          28          29
    ---------------------------------------------------------------------------

                        VETERANS BENEFITS ADMINISTRATION

                                  Federal Funds

    General and special funds:

                            Compensation and Pensions

        For the payment of compensation benefits to or on behalf of veterans
    and a pilot program for disability examinations as authorized by law (38
    U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension benefits
    to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15,
    51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and
    other officers' retirement pay, adjusted-service credits and
    certificates, payment of premiums due on commercial life insurance
    policies guaranteed under the provisions of Article IV of the Soldiers'
    and Sailors' Civil Relief Act of 1940, as amended, and for other
    benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and 2106,
    chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122,
    123; 45 Stat. 735; 76 Stat. 1198), [$22,766,276,000, to remain available
    until expended] such sums as may be necessary: Provided, That not to
    exceed [$17,419,000] $17,940,000 of the amount appropriated shall be
    reimbursed to ``General operating expenses'' and ``Medical care'' for
    necessary expenses in implementing those provisions authorized in the
    Omnibus Budget Reconciliation Act of 1990, and in the Veterans' Benefits
    Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for
    which is specifically provided as the ``Compensation and pensions''
    appropriation: Provided further, That such sums as may be earned on an
    actual qualifying patient basis, shall be reimbursed to ``Medical
    facilities revolving fund'' to augment the funding of individual medical
    facilities for nursing home care provided to pensioners as authorized.
    In addition, such sums as may be necessary to provide for any cost-of-
    living adjustment authorized by 38 U.S.C. 1104. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

               Summary of Budget Authority and Outlays by Program

                            [In thousands of dollars]

                                         2000 actual  2001 est.   2002 est.
    Distribution of budget authority by
        program:
      Compensation......................  18,488,274  20,209,593  21,830,522
      Pensions..........................   2,967,771   3,014,634   2,979,714
      Burial benefits...................     112,318     131,049     133,521
    Distribution of outlays by program:
      Compensation......................  19,004,846  18,095,962  21,753,663
      Pensions..........................   4,702,725   3,010,994   2,968,214
      Burial benefits...................     112,318     131,049     133,521

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Compensation:

            Veterans:
    00.01     World War II..................       3,212       3,099       3,131
    00.02     Korean conflict...............       1,268       1,266       1,321
    00.03     Vietnam era...................       6,367       6,695       7,609
    00.04     Peacetime service.............       3,275       3,429       3,792
    00.05     Persian Gulf conflict.........       1,366       1,649       2,086
                                               ---------   ---------  ----------
    00.91       Total veterans..............      15,488      16,138      17,939
            Survivors:
    01.01     World War I...................          34          29          26

    [[Page 889]]

    01.02     World War II..................       1,343       1,341       1,400
    01.03     Korean conflict...............         428         433         460
    01.04     Vietnam era...................       1,178       1,229       1,341
    01.05     Peacetime service.............         451         441         454
    01.06     Persian Gulf conflict.........          87         102         123
                                               ---------   ---------  ----------
    01.91       Total survivors.............       3,521       3,575       3,804
                                               ---------   ---------  ----------
    02.93     Total compensation............      19,009      19,713      21,743
            Other compensation expenses:
    03.01     Payment to general operating
                expense.....................           1           1           1
    03.02     Medical exam pilot program....          20          27          29
    03.03     Clothing allowance............          42          42          42
    03.04     Children of Vietnam Era.......          12          12          15
                                               ---------   ---------  ----------
    03.91       Total other compensation
                  expenses..................          75          82          87
          Pensions:

            Veterans:
    04.03     Improved Law..................       2,228       2,277       2,278
    04.04     Prior Law.....................          41          34          28
                                               ---------   ---------  ----------
    04.91       Total veterans..............       2,269       2,311       2,306
            Survivors:
    05.01     Improved Law..................         602         608         590
    05.02     Prior Law.....................          81          73          66
    05.03     Old Law.......................           1           1           1
                                               ---------   ---------  ----------
    05.91     Total survivors...............         684         682         657
                                               ---------   ---------  ----------
    05.92     Total pensions................       2,953       2,993       2,963
            Other pension expenses:
    06.02     Reimbursement to GOE and VHA..          16          18          18
          Burial benefits:

    07.01   Burial allowance................          34          34          35
    07.02   Burial plots....................          10          10          10
    07.03   Service-connected deaths........          12          12          13
    07.04   Burial flags....................          14          24          22
    07.05   Headstones and markers..........          30          34          36
    07.06   Graveliners.....................           7           9           8
    07.07   Pre-placed crypts...............           1           5           6
                                               ---------   ---------  ----------
    07.91     Total burial benefits.........         108         128         130
    08.01   Equal access to justice.........           3           3           3
          Reimbursable pension program:

    09.01   Minimum income for widows
              program.......................                       4           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,164      22,941      24,947
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         768         171
    22.00 New budget authority (gross)......      21,568      22,770      24,947
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      22,336      22,941      24,947
    23.95 Total new obligations.............     -22,164     -22,941     -24,947
    24.40 Unobligated balance carried
            forward, end of year............         171
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      21,568      22,766
            Appropriation (indefinite):
    60.05     Appropriation (indefinite)....                                 376
    60.05     Appropriation (indefinite)....                              24,568
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      21,568      22,766      24,944
    69.00 Offsetting collections (cash).....                       4           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      21,568      22,770      24,947
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       1,697          43       2,329
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,697          43       2,329
    73.10 Total new obligations.............      22,164      22,941      24,947
    73.20 Total outlays (gross).............     -23,820     -20,653     -24,856
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          43       2,329       2,420
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          43       2,329       2,420
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      21,568      20,441      22,529
    86.98 Outlays from mandatory balances...       2,252         212       2,329
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      23,820      20,653      24,856
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -4          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      21,568      22,766      24,944
    90.00 Outlays...........................      23,820      20,649      24,853
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Enacted/requested:
      Budget Authority..................      21,568      22,766      24,944
      Outlays...........................      23,820      20,649      24,855
    Appropriaton language to be
        transmitted later:
      Budget Authority..................                     589
      Outlays...........................                     589
                                        ------------------------------------
    Total:
      Budget Authority..................      21,568      23,355      24,944
      Outlays...........................      23,820      21,238      24,855
                                        ====================================

        This appropriation provides for the payment of compensation,
    pensions, and burial benefits to veterans and survivors.

        Compensation is paid to veterans for disabilities incurred in or
    aggravated during active military service. Dependency and Indemnity
    Compensation is paid to survivors of servicepersons or veterans whose
    death occurred while on active duty or as a result of service-connected
    disabilities. Compensation and vocational rehabilitation is provided to
    the children of Vietnam veterans who were born with the birth defect
    spina bifida.

        The Secretary may pay a clothing allowance to each veteran who uses
    a prescribed medication for a service-connected skin condition or wears
    a prosthetic or orthopedic appliance (including a wheelchair) which, in
    the judgment of the Secretary, tends to damage or tear the clothing of
    such veteran.

                AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                         2000 actual  2001 est.   2002 est.
    Veterans:
      Mexican border period.............           7           6           5
      World War I.......................          56          39          27
      World War II......................     521,325     484,735     448,755
      Korean conflict...................     172,542     168,217     163,653
      Vietnam era.......................     738,247     747,699     780,848
      Peacetime service.................     564,002     574,345     583,298
      Persian Gulf conflict.............     304,463     349,184     395,248
                                        ------------------------------------
          Total.........................   2,300,642   2,324,225   2,371,834
      Average payment per case, per year      $6,732      $7,152      $7,563
          Total obligations (in
            millions)...................     $15,488     $16,622     $17,939
                                        ====================================
    Children of Vietnam era veterans:
      Children..........................         890         936         982
      Average payment per case, per year         $13         $14         $15
          Total obligations (in
            millions)...................         $12         $13         $15
    Chapter 18 Vocational
        rehabilitations:
      Rehabilitations...................          18          19          20
      Average payment per case, per year      $2,944      $1,004      $1,259
          Total obligations (in
            millions) \1\...............          $0          $0          $0
        1 Amounts round to less than $1 million.

    Survivors:
      Prior to Spanish-American War.....           1           1           1
      Spanish-American War..............          15          15          12
      Mexican border period.............           2           2           2
      World War I.......................       3,073       2,569       2,148
      World War II......................     115,533     113,798     111,787
      Korean conflict...................      36,699      36,797      36,896
      Vietnam era.......................     102,552     106,182     109,941
      Peacetime service.................      40,560      39,616      38,658
      Persian Gulf conflict.............       6,831       7,862       8,871
                                        ------------------------------------
          Total.........................     305,266     306,842     308,316
      Average payment per case, per year     $11,534     $11,980     $12,338
          Total obligations (in
            millions)...................      $3,521      $3,676      $3,804
                                        ====================================
    Clothing allowance:
      Number of veterans................      76,349      76,285      76,234
      Average payment per case, per year        $550        $550        $550
          Total obligations (in
            millions)...................         $42         $42         $42
                                        ====================================

    [[Page 890]]

        Pension benefits may be paid to veterans or their survivors. A
    veteran's entitlement is based on active duty service of a specific
    length (normally 90 days or more) during a designated war period,
    disabilities considered permanent and total, and countable income below
    established levels. There is no disability requirement for survivor
    cases. Income support is provided at established benefit levels.

        Veterans who are under the age of 45 and are in receipt of a
    disability pension will be evaluated to determine whether a vocational
    goal is reasonably feasible. Those for whom a vocational goal is
    feasible are eligible for a program of vocational training.

        An automatic annual cost-of-living increase comparable to the annual
    social security increase is provided for those pensioners in the
    improved program and to parents receiving dependency and indemnity
    compensation. The increase, effective with payments made on January 1,
    2002, is expected to be 2.5 percent.

                  AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                         2000 actual  2001 est.   2002 est.
    Veterans:
      Improved law......................     344,509     338,669     333,249
      Prior law.........................      25,603      21,776      18,543
      Old law and service...............         324         279         241
                                        ------------------------------------
          Total.........................     370,436     360,724     352,033
      Average payment per case, per year
        (in dollars)....................      $6,125      $6,412      $6,550
                                        ------------------------------------
          Total obligations (in
            millions)...................      $2,269      $2,313      $2,306
                                        ====================================
    Survivors:
      Improved law......................     182,949     176,516     170,504
      Prior law.........................      79,872      71,398      63,930
      Old law and service...............       1,540       1,228         981
                                        ------------------------------------
          Total.........................     264,361     249,142     235,415
      Average payment per case, per year      $2,587      $2,745      $2,791
                                        ------------------------------------
          Total obligations (in
            millions)...................        $684        $684        $657
                                        ====================================
    Minimum Income for Widows Program:
      Widows............................                     558         523
    Average benefit per case, per year..                  $7,168      $5,736
                                        ------------------------------------
          Total obligations (in
            millions)...................                      $4          $3
                                        ====================================
    Vocational training:
      Trainees..........................           8           5           3
      Average benefit per year..........      $1,625      $1,200      $1,333
                                        ------------------------------------
          Total obligations (in
            millions) 1......
                                        ====================================
        1 Amounts round to less than $1 million.

        Burial benefits provides for: (a) the payment of an allowance of
    $300 (plus transportation charges where death occurs under VA care) to
    reimburse, in part, the burial and funeral expense of an eligible
    deceased veteran; (b) the payment of $150 for a plot allowance where an
    eligible veteran is not buried in a national cemetery or other cemetery
    under the jurisdiction of the United States; (c) the payment of a burial
    allowance up to $1,500 when a veteran dies as the result of service-
    connected disability; (d) furnishing a flag to drape the casket of each
    deceased veteran entitled thereto; (e) furnishing a headstone or marker
    for the grave of a veteran and, in certain cases, eligible dependents;
    and (f) authority to provide outer burial receptacles in the National
    Cemetery System.

                            NUMBER OF BURIAL BENEFITS

                                         2000 actual  2001 est.   2002 est.
    Burial allowance....................      81,190      82,200      84,000
    Burial plot.........................      68,422      69,422      70,422
    Service-connected death.............       9,445       9,540       9,740
    Burial flags........................     404,360     600,000     532,000
    Headstone markers...................     327,514     348,840     355,260
    Headstone allowance.................
    Graveliners.........................      49,301      50,362      45,961
    Preplaced crypts....................       3,998      15,773      19,650

        Miscellaneous assistance provides for: (a) payments to emergency
    officers of World War I and certain officers of the Regular
    Establishment who have retired because of service-connected disability;
    (b) payments for claims made pursuant to the provision of the World War
    Adjusted Compensation Act of 1924, as amended; (c) a special allowance
    (38 U.S.C. 1312) to dependents of certain veterans who died after
    December 31, 1956, but who were not fully and currently insured under
    the Social Security Act; and (d) payments authorized by the Equal Access
    to Justice Act.

                        MISCELLANEOUS ASSISTANCE CASELOAD

                                         2000 actual  2001 est.   2002 est.
    Retired Officers....................           2           1           1
    Special allowance dependents........         120         120         120
    Equal Access to Justice payments....         685         685         685

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........      22,164      22,937      24,944
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                       4           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,164      22,941      24,947
    ---------------------------------------------------------------------------

                            Compensation and Pensions

                    (Legislative proposal, subject to PAYGO)

        The Administration is proposing legislation that would permanently
    extend the following legal provisions that will otherwise expire over
    the next several years: (1) rounding down the annual compensation COLA
    increase, (2) authorization for the Internal Revenue Service to provide
    VA with access to data for determining eligibility for means-tested
    benefits, and (3) limiting pensions to Medicaid-eligible recipients in
    nursing homes.

                            Compensation and Pensions

                (Appropriations language to be transmitted later)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-3-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Compensation:

            Veterans:
    00.01     World War II..................                      88
    00.02     Korean conflict...............                      34
    00.03     Vietnam era...................                     176
    00.04     Peacetime service.............                     116
    00.05     Persian Gulf conflict.........                      69
                                               ---------   ---------  ----------
    00.91       Total veterans..............                     483
            Survivors:
    01.01     World War I...................                       1
    01.02     World War II..................                      38
    01.03     Korean conflict...............                      11
    01.04     Vietnam era...................                      36
    01.05     Peacetime service.............                      13
    01.06     Persian Gulf conflict.........                       2
                                               ---------   ---------  ----------
    01.91       Total survivors.............                     101
                                               ---------   ---------  ----------
    02.93   Total compensation..............                     584
          Other compensation expenses:

    03.01   Children of Vietnam Era.........                       2
          Veterans:

    04.03   Improved Law....................                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................                     589
    ----------------------------------------------------------------------------

    [[Page 891]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     589
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     589
    23.95 Total new obligations.............                    -589
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                     589
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                     589
    73.20 Total outlays (gross).............                    -589
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     589
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     589
    90.00 Outlays...........................                     589
    ---------------------------------------------------------------------------

        The Administration will transmit legislation that would provide $523
    million for increased benefit costs affected by the 3.5 percent rate
    increase for veterans with service-connected disabilities and the rates
    of dependency and indemnity compensation for the survivors of certain
    disabled veterans, as enacted by Public Law 106-413, the ``Veterans'
    Compensation Cost-of-Living Adjustment Act of 2000.'' This request also
    would provide $12 million to meet additional benefit costs due to
    program enhancements afforded by Public Law 106-419, the ``Veterans
    Benefits and Health Care Improvement Act of 2000.'' Additionally, this
    request would provide $17 million for benefit costs arising from the
    addition of diabetes to the list of diseases associated with exposure to
    certain herbicide agents as provided by the Agent Orange Act of 1991,
    Public Law 102-4. Lastly, this request would provide $38 million for
    rate adjustments due to the Consumer Price Index (CPI) computation error
    of 1999, as authorized by Public Law 106-554, the Omnibus Consolidated
    Appropriations Act.

                              Readjustment Benefits

        For the payment of readjustment and rehabilitation benefits to or on
    behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 34,
    35, 36, 39, 51, 53, 55, and 61, [$1,634,000,000, to remain available
    until expended] such sums as may be necessary: Provided, That expenses
    for rehabilitation program services and assistance which the Secretary
    is authorized to provide under section 3104(a) of title 38, United
    States Code, other than under subsection (a)(1), (2), (5) and (11) of
    that section, shall be charged to the account[: Provided further, That
    funds shall be available to pay any court order, court award or any
    compromise settlement arising from litigation involving the vocational
    training program authorized by section 18 of Public Law 98-77, as
    amended]. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Education and training:
    00.01     Sons and daughters............         123         132         157
    00.02     Spouses.......................          15          17          29
                                               ---------   ---------  ----------
    00.91       Total education and training         138         149         186
            Special assistance to disabled
                veterans:
    01.01     Vocational rehabilitation.....         439         392         432
    01.02     Housing grants................          22          21          23
    01.03     Automobiles, adaptive
                equipment, maintenance and
                repair......................          35          31          35
                                               ---------   ---------  ----------
    01.91       Total special assistance to
                  disabled veterans.........         496         444         490
    02.01   Work study......................          32          35          50
    02.02   Payments to states..............          13          13          14
    02.03   All-volunteer assistance:
              Veterans' basic benefits......         794       1,227       1,339
    02.04   Reporting fees..................           3           4           4
    02.05   Tuition Assistance..............                                  35
    02.06   Licensing and Certification.....                                  17
                                               ---------   ---------  ----------
    02.91     All-volunteer assistance and
                other.......................         842       1,279       1,459
                                               ---------   ---------  ----------
    02.93     Total direct program..........       1,476       1,872       2,135
    09.01 Veterans' basic benefits..........           8           7           5
    09.01 Veterans' supplementary benefits..          73          90          99
    09.01 Reservists benefits...............         103         100         103
    09.02 Reservist supplementary benefits..           7          14          20
    09.03 Reimbursement to GOE..............                       1           1
                                               ---------   ---------  ----------
    09.09   Reimbursable programs--subtotal.         191         212         228
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,667       2,084       2,363
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35          26
    22.00 New budget authority (gross)......       1,660       1,846       2,363
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                     212
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,695       2,084       2,363
    23.95 Total new obligations.............      -1,667      -2,084      -2,363
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,469       1,634
    60.05   Appropriation (indefinite)......                               2,135
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       1,469       1,634       2,135
    69.00 Offsetting collections (cash).....         191         212         228
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,660       1,846       2,363
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          58          37           8
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          58          37           8
    73.10 Total new obligations.............       1,667       2,084       2,363
    73.20 Total outlays (gross).............      -1,688      -1,901      -2,301
    73.45 Recoveries of prior year
            obligations.....................                    -212
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          37           8          70
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          37           8          70
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,595       1,835       2,293
    86.98 Outlays from mandatory balances...          93          63           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,688       1,901       2,301
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -191        -212        -228
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,469       1,634       2,135
    90.00 Outlays...........................       1,497       1,689       2,073
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Enacted/requested:
      Budget Authority..................       1,469       1,634       2,135
      Outlays...........................       1,497       1,686       2,073
    Appropriaton language to be
        transmitted later:
      Budget Authority..................                     347
      Outlays...........................                     284          63
                                        ------------------------------------
    Total:
      Budget Authority..................       1,469       1,981       2,135
      Outlays...........................       1,497       1,970       2,136
                                        ====================================

        This appropriation finances educational assistance allowances for
    certain service persons, peacetime veterans and for eligible dependents
    of those veterans: (a) who died from service-connected causes or have a
    total and permanent rated

    [[Page 892]]

    service-connected disability; and (b) servicepersons who were captured
    or missing in action. In addition, certain disabled veterans are
    provided with vocational rehabilitation, specially adapted housing
    grants, and automobile grants with the associated approved adaptive
    equipment. This appropriation provides such sums as may be necessary in
    2002 to meet program obligations which are currently estimated to be
    $2,135 million.

        The following table provides a comparison of trainees and costs for
    the Dependents Educational Assistance program.

                           NUMBER OF TRAINEES AND COST

                                         2000 actual  2001 est.   2002 est.
    Sons and daughters:
      Number of trainees................      38,965      39,891      41,373
      Average cost per trainee (in
        dollars)........................      $3,159      $3,774      $3,785
                                        ------------------------------------
          Total cost (in millions)......        $123        $151        $157
                                        ====================================
    Spouses and widow(ers):
      Number of trainees................       5,855       7,216       8,947
      Average cost per trainee (in
        dollars)........................      $2,538      $3,210      $3,290
                                        ------------------------------------
          Total cost (in millions)......         $15         $23         $29
                                        ====================================

        Special assistance to disabled veterans.--Service-disabled veterans
    requiring vocational rehabilitation receive assistance to cover the
    costs of subsistence, tuition, books, supplies, and equipment.

        Specially adapted housing grants, up to a maximum of $43,000, are
    provided to certain severely disabled veterans. Veterans who suffer
    service-connected blindness or who have lost the use of both upper
    extremities can receive up to $8,250.

        An allowance, up to a maximum of $8,000, is provided to certain
    service-disabled veterans and servicepersons toward the purchase price
    of an automobile. Adaptive equipment and the maintenance and replacement
    of such equipment is also provided.

        The following table shows caseload for this program. Specific
    performance goals are contained in VA's annual performance plan.

                         CASELOAD AND AVERAGE COST DATA

                                         2000 actual  2001 est.   2002 est.
          Total number of trainees......      52,786      53,250      53,400
      Average cost per trainee..........      $8,310      $7,872      $8,092
                                        ------------------------------------
          Total cost (in millions)......        $439        $419        $432
                                        ====================================
    Housing grants:
      Number of housing grants..........         574         600         600
      Average cost per grant............     $38,009     $38,009     $38,009
                                        ------------------------------------
          Total cost (in millions)......         $22         $23         $23
                                        ====================================
    Automobiles or other conveyances:
      Number of conveyances.............         987       1,000       1,000
      Average cost per conveyance.......      $7,947      $7,947      $7,947
                                        ------------------------------------
          Total cost (in millions)......          $8          $8          $8
                                        ====================================
    Adaptive equipment (including
        maintenance, repair and
        installation for automobiles):
      Number of items...................       8,459       8,300       8,100
      Average cost......................      $3,218      $3,311      $3,394
                                        ------------------------------------
          Total cost (in millions)......         $27         $27         $27
                                        ====================================

        Tuition Assistance.--Public Law 106-398, enacted October 30, 2000,
    allows the military services to pay up to 100 percent of tuition and
    expenses charged by a school for service members. If a service
    department pays less than 100 percent, a service member eligible for the
    Montgomery GI Bill--Active-duty (MGIB) can elect to receive MGIB
    benefits for all or a portion of the remaining expenses.

        Licensing and certification test payments.--Under Public Law 106-
    419, enacted November 1, 2000, veterans and other eligible persons may
    receive up to $2,000 to pay fees required for civilian occupational
    licensing and certification examinations needed to enter, maintain, or
    advance in employment in a vocation or profession--effective March 1,
    2001.

                         CASELOAD AND AVERAGE COST DATA

                                         2000 actual  2001 est.   2002 est.

    Tuition Assistance:
      Number of trainees................         N/A     161,000     214,000
      Average cost per trainee..........         N/A        $155        $161
                                        ------------------------------------
          Total cost (in millions)......         N/A         $25         $35
                                        ====================================
    Licensing and Certification:
      Number of individuals.............         N/A      26,800     101,800
      Average cost per trainee..........         N/A        $112        $167
                                        ------------------------------------
          Total cost (in millions)......         N/A          $3         $17
                                        ====================================

        Work-Study.--Certain veterans pursuing a program of rehabilitation,
    education, or training, who are enrolled as a full-time student, can
    work up to 250 hours per semester, receiving the Federal ($5.15 on 9/1/
    97) or State minimum wage rate, whichever is higher.

                                         2000 actual  2001 est.   2002 est.
      Number of contracts...............      21,511      28,400      28,900
                                        ------------------------------------
          Total cost (in millions)......         $32         $51         $50
                                        ====================================

        Payments to States.--State approving agencies are reimbursed for the
    costs of inspecting, approving, and supervising programs of education
    and training offered by educational institutions and training
    establishments in which veterans, dependents, and reservists are
    enrolled or are about to enter.

        Reporting fees.--Public Law 105-368, enacted November 11, 1998,
    transferred the reporting fee payments from the General Operating
    Expenses appropriation (GOE). Reporting fees are paid to education and
    training institutions to help defray the costs of certifying education
    enrollment for veterans enrolled in training during a calendar year.

        All Volunteer Force educational assistance (Montgomery GI Bill).--
    Public Law 98-525, enacted October 19, 1984, established two new
    peacetime educational programs: an assistance program for veterans who
    enter active duty during the period beginning July 1, 1985; and an
    assistance program for certain members of the Selected Reserve. The
    Readjustment benefits appropriation pays the basic benefit allowance for
    the peacetime veterans, except for certain Post-Vietnam Era Veterans
    Education participants who transferred to the Montgomery GI Bill
    program. Supplementary educational assistance and the basic benefit
    allowance for peacetime veterans, Post-Vietnam Era Veterans Education
    converters, and reservists are financed by payments from the Department
    of Defense and the Department of Transportation.

        The following table shows a caseload and cost comparison for these
    beneficiaries under existing legislation.

                         CASELOAD AND AVERAGE COST DATA

                                         2000 actual  2001 est.   2002 est.
    Veterans:
      Number of trainees................     279,949     324,300     334,300
      Average cost per trainee..........      $3,133      $4,181      $4,316
                                        ------------------------------------
          Total cost (in millions)......        $877      $1,356      $1,443
                                        ====================================
    Reservists:
      Number of trainees................      70,299      71,500      70,500
      Average cost per trainee..........      $1,531      $1,620      $1,752
                                        ------------------------------------
          Total cost (in millions)......        $108        $116        $124
                                        ====================================

    [[Page 893]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       1,476       1,872       2,135
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................         191         212         228
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,667       2,084       2,363
    ---------------------------------------------------------------------------

                              Readjustment Benefits

                (Appropriations language to be transmitted later)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-3-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Education and training:
    00.01     Sons and daughters............                      19
    00.02     Spouses.......................                       6
                                               ---------   ---------  ----------
    00.91       Total education and training                      25
            Special assistance to disabled
                veterans:
    01.01     Vocational rehabilitation.....                      27
    01.02     Housing grants................                       2
    01.03     Automobiles, adaptive
                equipment, maintenance and
                repair......................                       4
    01.04     Tuition Assistance............                      25
    01.05     Licensing and Certification...                       3
                                               ---------   ---------  ----------
    01.91       Total special assistance to
                  disabled veterans.........                      61
    02.01   Work study......................                      15
    02.02   Payments to states..............                       1
    02.03   All-volunteer assistance:
              Veterans' basic benefits......                     242
    02.04   Reporting fees..................                      -1
                                               ---------   ---------  ----------
    02.91     All-volunteer assistance and
                other.......................                     257
                                               ---------   ---------  ----------
    02.93     Total direct program..........                     343
    09.03 Reimbursement to GOE..............                       4
                                               ---------   ---------  ----------
    09.09   Reimbursable programs--subtotal.                       4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     347
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     347
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     347
    23.95 Total new obligations.............                    -347
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                     347
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                                  63
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                                  63
    73.10 Total new obligations.............                     347
    73.20 Total outlays (gross).............                    -284         -63
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.                      63
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year                      63
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     284
    86.98 Outlays from mandatory balances...                                  63
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     284          63
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     347
    90.00 Outlays...........................                     284          63
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-3-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....                     343
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................                       4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                     347
    ---------------------------------------------------------------------------

        The Administration will transmit legislation that would provide $347
    million for program increases that are required by recently-enacted
    legislation and greater than expected numbers of trainees and average
    costs per trainee. Public Law 106-398, the ``Floyd D. Spence National
    Defense Authorization Act for Fiscal Year 2001'' authorizes Montgomery
    GI Bill (MGIB) payments to active-duty personnel to supplement their
    military tuition assistance. Public Law 106-419, the ``Veterans Benefits
    and Health Care Improvement Act of 2000'' also expanded educational
    assistance. It includes provisions that: increased basic full-time
    monthly benefit rates under MGIB from $552 to $650, effective November
    1, 2000 (an increase of 21 percent over rates for 2000 when previously
    only a 3 percent cost-of-living adjustment had been authorized);
    increased monthly rates for Survivors' and Dependents' Educational
    Assistance from $485 to $588, effective November 1, 2000 (an increase of
    21 percent over rates for 2000 when previously none had been
    authorized); and provide up to $2,000 for licensing and certification
    testing under MGIB, effective March 1, 2001.

      Reinstated Entitlement Program for Survivors Under Public Law 97-377

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0200-0-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Return of overpayment.............           2
                                               ---------   ---------  ----------
    01.00   Total Direct Program............           2
    09.01 Reimbursables.....................          16          15          14
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......          16          15          14
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................          18          15          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          16          15          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          15          14
    23.95 Total new obligations.............         -18         -15         -14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          16          15          14
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............          18          15          14
    73.20 Total outlays (gross).............         -16         -15         -14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          16          15          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -15         -14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        In accordance with Public Law 97-377, this program restores social
    security benefits to certain surviving spouses or children of veterans
    who died of service-connected causes.

    [[Page 894]]

    Financing is provided in the form of offsetting collections from the
    Department of Defense.

                         CASELOAD AND AVERAGE COST DATA

                                         2000 actual  2001 est.   2002 est.
    Spouses.............................         227         210         184
    Average benefit.....................     $13,215     $14,285     $16,304
    Obligations (in millions)...........          $3          $3          $3
    Children............................         911         840         783
    Average benefit.....................     $10,978     $14,285     $14,049
    Obligations (in millions)...........         $10         $12         $11

                       Veterans Insurance and Indemnities

        For military and naval insurance, national service life insurance,
    servicemen's indemnities, service-disabled veterans insurance, and
    veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
    70 Stat. 887; 72 Stat. 487[, $19,850,000, to remain available until
    expended] such sums as may be necessary. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.04   Payment to national service life
              insurance fund................           1           1           1
    00.05   Payment to service-disabled
              veterans insurance fund.......          19          18          19
    00.06   Total operating expenses........           8           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          28          27          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           5
    22.00 New budget authority (gross)......          31          22          28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          33          27          28
    23.95 Total new obligations.............         -28         -27         -28
    24.40 Unobligated balance carried
            forward, end of year............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          29          20          26
    69.00 Offsetting collections (cash).....           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          31          22          28
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............          28          27          28
    73.20 Total outlays (gross).............         -28         -27         -28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          28          22          28
    86.98 Outlays from mandatory balances...                       5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          27          28
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: VMLI premiums...........          -2          -2          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          29          20          28
    90.00 Outlays...........................          26          25          26
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        Military and naval insurance.--Payments are made to the U.S.
    Government life insurance fund for certain World War I veterans for
    extra hazards of military service and for claims on war risk insurance
    issued to servicemen and veterans of World War I.

        National service life insurance.--Payments are made to the national
    service life insurance fund for certain World War II veterans for: (a)
    the extra hazards of service; (b) gratuitous insurance granted to
    certain persons unable to apply for national service life insurance; and
    (c) death claims on policies under the waiver of a premium while the
    insured was on active duty.

        Veterans mortgage life insurance (VMLI).--Payments are made to
    mortgage holders under this program which provides mortgage protection
    life insurance to veterans who have received a grant for specially
    adapted housing due to severe disabilities.

        The general decline in the number of policies and the amount of
    insurance in force is expected to continue in 2002 as indicated in the
    following table.

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.

    VMLI policies:
      Number of policies................       3,457       3,340       3,250
      Amount of insurance (dollars in
        millions).......................         198         198         198

        Payment to service-disabled veterans insurance fund.--Payments are
    made to the service-disabled veterans insurance fund to supplement the
    premiums and other receipts of the fund in amounts necessary to pay
    claims on insurance policies issued to veterans with service-connected
    disabilities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................          20          19          20
    42.0  Insurance claims and indemnities..           8           8           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          28          27          28
    ---------------------------------------------------------------------------

    Public enterprise funds:

                    Service-Disabled Veterans Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          34          27          18
        Appropriations:
    05.00 Service-disabled veterans
            insurance fund..................          -7          -9         -13
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          27          18           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Capital investment................          12          12          12
    09.01 Death claims......................          43          44          46
    09.01 All other.........................           9           9          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          64          65          68
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          64          65          68
    23.95 Total new obligations.............         -64         -65         -68
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          57          56          55
    69.26   From offsetting collections
              (unavailable balances)........           7           9          13
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          64          65          68
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           8           8           6
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           8           8           6

    [[Page 895]]

    73.10 Total new obligations.............          64          65          68
    73.20 Total outlays (gross).............         -64         -67         -68
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           8           6           6
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           8           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          57          59          62
    86.98 Outlays from mandatory balances...           7           8           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          64          67          68
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                VI and I....................         -19         -18         -18
              Non-Federal sources:
    88.40       Interest on loans...........          -3          -3          -3
    88.40       Insurance premiums earned...         -23         -23         -22
    88.40       Repayments of loans.........         -12         -12         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -57         -56         -55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           9          13
    90.00 Outlays...........................           7          11          13
    ---------------------------------------------------------------------------

        This fund finances the payment of claims on nonparticipating life
    insurance policies issued and currently is open for new issues to
    veterans having service-connected disabilities. The program provides
    insurance coverage for service-disabled veterans at standard rates.
    Administrative expenses are paid from the General operating expenses
    appropriation.

        Operating costs--
            Death claims.--Represents payments to designated beneficiaries.
            All other.--Represents payments to policyholders who surrender
        their policies for their cash value and hold endowment policies
        which have matured.

        Capital investment.--A policyholder may borrow up to 94 percent of
    the value of his policy.

        The trend in the number and amount of policies in force is indicated
    in the following table.

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.
    Number of policies..................     151,315     147,935     144,450
    Insurance in force (dollars in
    millions)...........................       1,418       1,398       1,375

        Financing.--Operations are financed from premiums and other
    receipts. Additional funds are received by transfer from the veterans'
    insurance and indemnities appropriation, instead of direct
    appropriations to this fund.

        Operating results and financial condition.--Since premium and other
    receipts are insufficient to cover operations, the fund continues to
    project liabilities in excess of assets. The deficit is expected to
    reach an estimated $461 million by September 30, 2002.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          12          12          12
    42.0  Insurance claims and indemnities..          52          53          56
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          64          65          68
    ---------------------------------------------------------------------------

                        Veterans Reopened Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         466         454         437
        Appropriations:
    05.00 Veterans reopened insurance fund..         -12         -17         -18
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         454         437         419
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          35          38          39
    09.01 Dividends.........................          22          21          18
    09.01 All other.........................           8           8           8
    09.01 Capital investment: policy loans..           5           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          70          72          70
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          70          72          70
    23.95 Total new obligations.............         -70         -72         -70
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          58          55          52
    69.26   From offsetting collections
              (unavailable balances)........          12          17          18
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          70          72          70
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          44          46          48
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          44          46          48
    73.10 Total new obligations.............          70          72          70
    73.20 Total outlays (gross).............         -68         -70         -69
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          46          48          49
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          46          48          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          24          46          48
    86.98 Outlays from mandatory balances...          44          24          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          68          70          69
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: interest on
                U.S. securities.............         -38         -36         -34
              Non-Federal sources:
    88.40       Interest on loans...........          -1          -2          -1
    88.40       Insurance premiums earned...         -13         -12         -11
    88.40       Repayments of loans.........          -6          -5          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -58         -55         -52
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12          17          18
    90.00 Outlays...........................          10          15          17
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         509         500         485
    92.02 Total investments, end of year:
            Federal securities: Par value...         500         485         467
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund pays claims and administrative costs on participating life
    insurance policies issued during the period May 1, 1965, through May 2,
    1966, under three life insurance programs: (1) service-disabled standard
    insurance; (2) service-disabled rated insurance; and (3) nonservice
    disabled insur- ance availing disabled World War II and Korean conflict
    veterans an opportunity to acquire life insurance coverage who were no
    longer eligible for other Government insurance.

        Budget program--
            Death claims.--Represents payments to designated beneficiaries.
            Dividends.--Policyholders participate in the distribution of
        annual dividends.
            All other.--This represents payments to the General Operating
        Expenses account for the administrative costs of

    [[Page 896]]

        processing claims and maintaining the accounts, and to those
        policyholders who: (a) surrender their policies for cash value; (b)
        hold endowment policies which have matured; and (c) have purchased
        total disability income coverage and subsequently become disabled.
            Policy loans made.--A policyholder may borrow up to 94 percent
        of the cash value of his policy at an interest rate adjusted to
        reflect private sector borrowing costs.
            The following table reflects the decrease in the number of
        policies and the amount of insurance in force:

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.
      Number of policies................      77,638      72,300      66,890
      Insurance in force (dollars in
        millions).......................         648         617         584

        Financing.--Operations are financed from premiums collected from
    policyholders and interest on investments. Excess earnings of the fund
    are now distributed to the policyholders in the form of an annual
    dividend.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............           5           5           5
    42.0  Insurance claims and indemnities..          39          42          43
    43.0  Interest and dividends............          26          25          22
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          70          72          70
    ---------------------------------------------------------------------------

                    Servicemembers' Group Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4009-0-3-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Premium payments..................         377         441         489
    09.01 Payment to GOE account............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         378         442         490
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......         378         442         490
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         379         443         491
    23.95 Total new obligations.............        -378        -442        -490
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         378         442         490
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           5           5           5
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           5           5           5
    73.10 Total new obligations.............         378         442         490
    73.20 Total outlays (gross).............        -378        -442        -490
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           5           5           5
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         373         437         485
    86.98 Outlays from mandatory balances...           5           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         378         442         490
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Withholdings from serviceman's
              pay...........................        -378        -442        -490
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           5           5           5
    92.02 Total investments, end of year:
            Federal securities: Par value...           5           5           5
    ---------------------------------------------------------------------------

        This fund finances the payment of group life insurance premiums to
    private insurance companies under the Servicemembers' Group Life
    Insurance Act of 1965, as amended.

    Credit accounts:

              Veterans Housing Benefit Program Fund Program Account

                          (including transfer of funds)

        For the cost of direct and guaranteed loans, such sums as may be
    necessary to carry out the program, as authorized by 38 U.S.C. chapter
    37, as amended: Provided, That such costs, including the cost of
    modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That
    during fiscal year [2001] 2002, within the resources available, not to
    exceed $300,000 in gross obligations for direct loans are authorized for
    specially adapted housing loans: Provided further, that no funds shall
    be available for costs of new loans for purchasers of Federally-owned
    property, ``Vendee Home Loans.''
        In addition, for administrative expenses to carry out the direct and
    guaranteed loan programs, [$162,000,000] $164,497,000, which may be
    transferred to and merged with the appropriation for ``General operating
    expenses'': Provided, that no funds shall be available for
    administrative costs of new ``Vendee Home Loans''. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0101  GIF direct loans, downward
            reestimate of subsidies.........       1,064       1,420
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          40          37          15
    00.02 Guaranteed loan subsidy...........         217         143         188
    00.05 Reestimates of direct loan subsidy           6          19
    00.06 Interest on reestimates of the
            direct loan subsidy.............           3           5
    00.07 Reestimates of guaranteed loan
            subsidy.........................         890         123
    00.08 Interest on reestimates of the
            guaranteed loan subsidy.........         347          24
    00.11 Administrative expenses...........         157         162         166
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,660         513         369
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,660         513         369
    23.95 Total new obligations.............      -1,660        -513        -369
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation (definite)........         157         162         166
          Mandatory:

    60.05   Appropriation (indefinite)......       1,503         351         203
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,660         513         369
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............       1,660         513         369

    [[Page 897]]

    73.20 Total outlays (gross).............      -1,660        -513        -369
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         157         162         166
    86.97 Outlays from new mandatory
            authority.......................       1,503         351         203
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,660         513         369
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,660         513         369
    90.00 Outlays...........................       1,660         513         369
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Enacted/requested:
      Budget Authority..................       1,660         513         369
      Outlays...........................       1,660         513         369
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  -1
      Outlays...........................                                  -1
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 -15
      Outlays...........................                                 -15
                                        ------------------------------------
    Total:
      Budget Authority..................       1,660         513         353
      Outlays...........................       1,660         513         353
                                        ====================================

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................       1,435       1,697       1,710
                                               ---------   ---------  ----------
    1159    Total direct loan levels........       1,435       1,697       1,710
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        1.81        2.16        0.86
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        1.81        2.16        0.86
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........          40          37          15
    1330  Subsidy budget authority for
            downward reestimates............         -67        -163
    1330  Subsidy budget authority for
            upward reestimates..............           9          24
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         -18        -102          15
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................          40          37          15
    1340  Subsidy outlays for downward
            reestimates.....................         -67        -163
    1340  Subsidy outlays for upward
            reestimates.....................           9          24
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         -18        -102          15
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Guaranteed loan...................      20,159      29,535      28,949
    2150  Guaranteed loan sales.............       1,457       1,108       1,498
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      21,616      30,643      30,447
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed loan subsidy rate......        0.49        0.29        0.39
    2320  Guaranteed loan sales subsidy rate        3.60        5.21        5.05
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        0.70        0.47        0.62
        Guaranteed loan subsidy budget authority:
    2330  Guaranteed loan budget authority..         137          86         113
    2330  Guaranteed loan sale budget
            authority.......................          79          58          75
    2330  Subsidy budget authority downward
            reestimates.....................        -997      -1,257
    2330  Subsidy budget authority upward
            reestimates.....................       1,237         147
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         456        -966         188
        Guaranteed loan subsidy outlays:
    2340  Guaranteed loan subsidy outlay....         137          86         113
    2340  Guaranteed loan sale subsidy
            outlay..........................          79          58          75
    2340  Subsidy outlays for downward
            reestimates.....................        -997      -1,257
    2340  Subsidy outlays for upward
            reestimates.....................       1,237         147
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         456        -966         188
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         157         162         166
    3590  Outlays from new authority........         157         162         166
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond,
    (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year) as well as for the
    administrative expenses of this program. The subsidy amounts are
    estimated on a net present value basis.

        The Federal guaranty for this program protects lenders against the
    following types of losses: (a) for loans of $45,000 or less, 50 percent
    of the loan is guaranteed; (b) for loans greater than $45,000, but not
    more than $56,250, $22,500; (c) for loans more than $56,250, but less
    than $144,000, the lesser of $36,000 or 40 percent of the loan; or (d)
    for loans greater than $144,000, the lesser of $50,750 or 25 percent of
    the loan.

        As part of a continuing effort to reduce administrative costs, in
    addition to restructuring and consolidations, VA is conducting a study
    of the property management function to determine whether it would be
    more cost effective to contract out this activity. The study will be
    complete at the end of 2001.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.3  Purchases of goods and services
            from Government accounts........         157         162         166
    41.0  Grants, subsidies, and
            contributions...................       1,503         351         203
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,660         513         369
    ---------------------------------------------------------------------------

              Veterans Housing Benefit Program Fund Program Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-2-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.11 Administrative expenses...........                                  -1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................                                  -1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  -1
    23.95 Total new obligations.............                                   1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation (definite)........                                  -1
                                                                              -1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                  -1
    73.20 Total outlays (gross).............                                   1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  -1
    90.00 Outlays...........................                                  -1
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-2-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................                                0.00
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                                0.00
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed loan subsidy rate......                                0.00

    [[Page 898]]

    2320  Guaranteed loan sales subsidy rate                                0.00
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                                0.00
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................                                  -1
    3590  Outlays from new authority........                                  -1
    ---------------------------------------------------------------------------

              Veterans Housing Benefit Program Fund Program Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-4-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............                                  15
    00.02 Guaranteed loan subsidy...........                                 -30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 -15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -15
    23.95 Total new obligations.............                                  15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......                                 -15
                                                                             -15
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 -15
    73.20 Total outlays (gross).............                                  15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -15
    90.00 Outlays...........................                                 -15
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-4-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                              -1,591
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                              -1,591
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................                               23.83
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                               23.83
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........                                  15
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                                  15
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................                                  15
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                                  15
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Guaranteed loan sales.............                              -1,130
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....                              -1,130
        Guaranteed loan subsidy (in percent):
    2320  Guaranteed loan subsidy rate......                                0.09
    2320  Guaranteed loan sales subsidy rate                                0.25
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...                               -0.08
        Guaranteed loan subsidy budget authority:
    2330  Guaranteed loan budget authority..                                  26
    2330  Guaranteed loan sale budget
            authority.......................                                 -57
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                                 -31
        Guaranteed loan subsidy outlays:
    2340  Guaranteed loan subsidy outlay....                                  26
    2340  Guaranteed loan sale subsidy
            outlay..........................                                 -57
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                                 -31
    ---------------------------------------------------------------------------

       Veterans Housing Benefit Program Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       1,435       1,696       1,710
    00.02 Interest on Treasury borrowing....         249         136         161
    00.03 Property sales expense............           2           2           2
    00.04 Property management/other expense.           4           1           1
    00.05 Property improvement expense......           4           1           1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,694       1,836       1,875
    08.02 Payment of downward reestimate to
            receipt account.................          58         127
    08.04 Payment of excess interest earned
            to receipt account..............           9          36
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          67         163
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,761       1,999       1,875
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         908         279
    22.00 New financing authority (gross)...       1,132       1,720       1,875
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,040       1,999       1,875
    23.95 Total new obligations.............      -1,761      -1,999      -1,875
    24.40 Unobligated balance carried
            forward, end of year............         279
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)       1,150       1,519       1,695
    69.00 Offsetting collections (cash).....       1,820       1,372       1,715
    69.47 Portion applied to repay debt.....      -1,838      -1,171      -1,535
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         -18         201         180
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,132       1,720       1,875
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          -1           9          11
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          -1           9          11
    73.10 Total new obligations.............       1,761       1,999       1,875
    73.20 Total financing disbursements
            (gross).........................      -1,751      -1,998      -1,875
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           9          11          10
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           9          11          10
    87.00 Total financing disbursements
            (gross).........................       1,751       1,998       1,875
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources:Payments
                  from program account......         -50         -61         -15
    88.00       Transfer of loan sales from
                  LSSA......................      -1,454      -1,048      -1,418
              Non-Federal sources:
                Non-Federal sources:

    88.40         Repayments of principal...         -82         -80        -105
    88.40         Interest received on loans         -87         -88         -82
    88.40         Fees......................         -21         -26         -26
    88.40         Downpayment on Vendee
                    loan/other..............         -19         -36         -36
    88.40         Cash sale of properties...         -15         -33         -33
    88.40         Other revenue.............         -92
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,820      -1,372      -1,715
    ----------------------------------------------------------------------------

    [[Page 899]]

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -688         348         160
    90.00 Financing disbursements...........         -70         626         160
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1131  Direct loan obligations exempt
            from limitation.................       1,435       1,697       1,710
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,435       1,697       1,710
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,600       1,556       2,060
    1231  Disbursements: Direct loan
            disbursements...................       1,435       1,697       1,710
          Repayments:

    1251    Repayments and prepayments......         -82         -80        -105
    1253    Proceeds from loan asset sales
              to the public with recourse...      -1,454      -1,048      -1,419
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................          -4         -59         -80
          Write-offs for default:

    1263    Direct loans....................          -6          -6          -8
    1264    Other adjustments, net..........          67
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,556       2,060       2,158
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4127-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       1,014            312           422            283
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,588          1,556         2,060          2,158
    1402    Interest receivable.............                        121           160            167
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,588          1,677         2,220          2,325
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,602          1,989         2,642          2,608
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       1,944          1,778         2,353          2,465
          Non-Federal liabilities:

    2201    Accounts payable................         103
    2204    Liabilities for loan guarantees.         555            211           288            143
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,602          1,989         2,641          2,608
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,602          1,989         2,641          2,608
    -----------------------------------------------------------------------------------------------

     Veterans Housing Benefit Program Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Acquisition of homes..............       1,341       1,623       2,017
    00.02 Losses on defaulted loans.........         485         497         518
    00.03 Interest on Treasury borrowing....           2           2           2
    00.04 Reimburse DLFA for loan sales.....       1,454       1,049       1,419
    00.05 Payment to trustee reserve........          76          72          75
    00.06 Reimburse Liquidating for
            subordination certificate.......          37          36          30
    00.07 Loan Sale Closing Costs...........           3           6           7
    00.09 Property sales expense............         103         128         161
    00.10 Property management expense.......          47          70          83
    00.11 Property improvement expense......          58          49          53
    00.12 Loans acquired....................         236         103          92
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       3,842       3,635       4,457
    08.02 Payment of downward reestimate to
            receipt account.................         661         893
    08.04 Payment of excess interest to
            receipt account.................         336         364
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         997       1,257
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,839       4,892       4,457
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       4,438       5,128       4,346
    22.00 New financing authority (gross)...       5,529       4,111       4,501
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       9,967       9,239       8,847
    23.95 Total new obligations.............      -4,839      -4,892      -4,457
    24.40 Unobligated balance carried
            forward, end of year............       5,128       4,346       4,390
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       5,565       4,111       4,501
    69.47   Portion applied to repay debt...         -36
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       5,529       4,111       4,501
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       5,529       4,111       4,501
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         166          22          25
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         166          22          25
    73.10 Total new obligations.............       4,839       4,892       4,457
    73.20 Total financing disbursements
            (gross).........................      -4,982      -4,889      -4,462
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          22          25          20
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          22          25          20
    87.00 Total financing disbursements
            (gross).........................       4,982       4,889       4,462
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
                Federal sources:

    88.00         Payments from program
                    account.................      -1,454        -290        -188
    88.00         Recoveries from DLFA......      -1,233      -1,435      -1,472
    88.25     Interest on uninvested funds..        -298        -233        -213
              Non-Federal sources:
                Non-Federal sources:

    88.40         Funding fees..............        -423        -577        -567
    88.40         Cash sale of properties...        -633        -468        -588
    88.40         Redemption of properties
                    and other...............                     -23         -25
    88.40         Refunds from Trust........         -26
    88.40         Subordinate certificate
                    deposits................         -37         -37         -30
    88.45     Loan sale proceeds............      -1,461      -1,048      -1,418
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -5,565      -4,111      -4,501
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -36
    90.00 Financing disbursements...........        -583         778         -39
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................      20,159      29,535      28,949
    2132  Guaranteed loan commitments for
            loan asset sales with recourse..       1,457       1,108       1,498
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      21,616      30,643      30,447
    2199  Guaranteed amount of guaranteed
            loan commitments................       7,993      10,682      10,883
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     203,651     211,568     225,644
    2231  Disbursements of new guaranteed
            loans...........................      20,159      29,535      28,949
    2232  Guarantees of loans sold to the
            public with recourse............       1,457       1,108       1,499
    2251  Repayments and prepayments........     -12,203     -13,532     -14,732
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -177        -140        -145
    2262    Terminations for default that
              result in acquisition of
              property......................      -1,341      -1,623      -2,017

    [[Page 900]]

    2263    Terminations for default that
              result in claim payments......        -462        -510        -526
    2264    Other adjustments, net..........         484        -762        -735
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     211,568     225,644     237,937
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      73,959      78,391      82,478
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         197           9         122
    2331    Disbursements for guaranteed
              loan claims...................         177         140         145
    2351    Repayments of loans receivable..         -12          -1          -8
    2361    Write-offs of loans receivable..         -66         -26         -47
    2364    Other adjustments, net..........        -287
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......           9         122         212
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond, including
    modifications of guaranteed loans that resulted from commitments in any
    year, and from the guarantee of loans sold through the securitization
    programs. The amounts in this account are a means of financing and are
    not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4129-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       4,603          5,150         4,347          4,641
            Investments in US securities:
    1106      Receivables, net..............         823            114            95            102
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         197              9           122            212
    1502    Interest receivable.............                          9             9             10
    1504    Accounts receivable from
              foreclosed property...........         966            806           837            896
    1505    Other assets....................                        196           195            207
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       1,163          1,020         1,163          1,325
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       6,627          6,284         5,605          6,068
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         166             38            18             20
    2105    Other...........................         403          1,296           445            558
    2204  Non-Federal liabilities: Non-
            federal liabilities.............       6,058          4,950         5,142          5,490
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       6,627          6,284         5,605          6,068
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       6,627          6,284         5,605          6,068
    -----------------------------------------------------------------------------------------------

            Veterans Housing Benefit Program Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investments:

    00.01   Acquisition of homes............         190         175         148
    00.02   Property improvements...........           8          16          13
    00.03   Cash advances...................          11          10           9
    00.04   Acquisition of defaulted
              guaranteed loans..............          27          37          35
    00.05   Repurchase of loans sold........          12           9           8
                                               ---------   ---------  ----------
    00.91     Total capital investments.....         248         247         213
                                               ---------   ---------  ----------
    01.00   Total capital investments.......         248         247         213
          Operating expenses:

    01.02   Property management expense.....          15          22          19
    01.03   Sales expense...................          19          20          18
    01.04   Claims processed................          59          57          56
    01.05   Other operating expenses........                       2           2
                                               ---------   ---------  ----------
    01.91     Total operating expenses......          93         101          95
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................         341         348         308
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         114         244
    22.00 New budget authority (gross)......         547         433         390
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         138
    22.40 Capital transfer to general fund..        -215        -329         -82
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         584         348         308
    23.95 Total new obligations.............        -341        -348        -308
    24.40 Unobligated balance carried
            forward, end of year............         244
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         132
    69.00 Offsetting collections (cash).....         415         433         390
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         547         433         390
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          45          88          90
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          45          88          90
    73.10 Total new obligations.............         341         348         308
    73.20 Total outlays (gross).............        -160        -346        -319
    73.45 Recoveries of prior year
            obligations.....................        -138
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          88          90          79
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          88          90          79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         115         258         229
    86.98 Outlays from mandatory balances...          45          88          90
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         160         346         319
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources: Payments
                  from direct loan financing
                  account...................        -181        -262        -238
    88.00       Federal sources: Payments
                  from loan sales...........         -37         -36         -30
              Non-Federal sources:
                Non-Federal sources:

    88.40         Loan and other repayments.         -46         -24         -21
    88.40         Sale of homes, cash.......         -95         -69         -62
    88.40         Interest on loans.........         -35         -32         -29
    88.40         Collection of claims
                    (veteran indebtedness)..         -20         -10         -10
    88.40         Other revenue.............          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -415        -433        -390
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         132
    90.00 Outlays...........................        -255         -87         -71
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Enacted/requested:
      Budget Authority..................         132
      Outlays...........................        -255         -87         -71
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                  34
                                        ------------------------------------
    Total:
      Budget Authority..................         132

    [[Page 901]]

      Outlays...........................        -255         -87         -37
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         317         164         148
    1232  Disbursements: Purchase of loans
            assets from the public..........          12           9           8
          Repayments:

    1251    Repayments and prepayments......         -46         -24         -21
    1253    Proceeds from loan asset sales
              to the public with recourse...          -9         -13         -12
    1261  Adjustments: Capitalized interest.          23          12          11
    1264  Write-offs for default: Other
            adjustments, net................        -133
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         164         148         134
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      17,638      12,740       9,132
    2232  Guarantees of loans sold to the
            public with recourse............           1
    2251  Repayments and prepayments........      -4,623      -3,339      -2,393
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -27         -36         -35
    2262    Terminations for default that
              result in acquisition of
              property......................        -190        -175        -148
    2263    Terminations for default that
              result in claim payments......         -59         -58         -56
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      12,740       9,132       6,500
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       5,763       4,131       2,941
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         574         286         286
    2331    Disbursements for guaranteed
              loan claims...................          27          36          35
    2351    Repayments of loans receivable..         -20         -10         -10
    2361    Write-offs of loans receivable..        -116         -26         -25
    2364    Other adjustments, net..........        -179
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         286         286         286
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4025-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         393             93           101             81
    0102  Expense...........................        -168            -93          -101            -95
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         225                                         -14
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4025-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         160
            Investments in US securities:
              Receivables, net:
    1106        Receivables, net............          93
    1106        Receivables, net............                        165           148            134
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         239
    1206    Accounts Receivable, net........           1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         377
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         377
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         870            165           148            134
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................                        165           148            134
    2105    Federal liabilities: Other......         731
          Non-Federal liabilities:

    2201    Accounts payable................         149
    2207    Other...........................         -10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         870            165           148            134
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         870            165           148            134
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records all cash flows to and from the Government resulting from direct
    loans obligated and loan guarantees committed prior to 1992. All new
    activity in this program in 1992 and beyond is recorded in the
    corresponding program and financing accounts.

            Veterans Housing Benefit Program Fund Liquidating Account

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-4-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -34
    22.40 Capital transfer to general fund..                                  34
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                 -34
                                                                             -34
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                direct loan financing
                account.....................                                 203
              Non-Federal sources:
                Non-Federal sources:

    88.40         Loan and other repayments.                                  -1
    88.40         Sale of homes, cash.......                                -168
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                                  34
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                                  34
    ---------------------------------------------------------------------------

        The Administration is proposing legislation to eliminate
    disbursements of vendee loans. VA will sell all foreclosed properties on
    a cash basis.

              Miscellaneous Veterans Housing Loans Program Account

              Native American Veteran Housing Loan Program Account

                          (including transfer of funds)

        For administrative expenses to carry out the direct loan program
    authorized by 38 U.S.C. chapter 37, subchapter V, as amended, [$532,000]
    $544,000, which may be transferred to and merged with the appropriation
    for ``General operating expenses''. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

      guaranteed transitional housing loans for homeless veterans program
                                     account

                          (including transfer of funds)

        Not to exceed $750,000 of the amounts appropriated by this Act for
    ``General operating expenses'' and ``Medical care'' may be expended for
    the administrative expenses to carry out the guaranteed loan program
    authorized by 38 U.S.C. chapter 37, subchapter VI. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

    [[Page 902]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0128-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                       6          10
    00.09 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           1           7          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6          51          45
    22.00 New budget authority (gross)......          46           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          52          52          46
    23.95 Total new obligations.............          -1          -7         -11
    24.40 Unobligated balance carried
            forward, end of year............          51          45          35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           1           1
          Mandatory:

    60.00   Appropriation...................          45
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          46           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           1           7          11
    73.20 Total outlays (gross).............          -1          -7         -11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.98 Outlays from mandatory balances...                       6          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           7          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46           1           1
    90.00 Outlays...........................           1           7          11
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0128-0-1-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................           2           3           3
                                               ---------   ---------  ----------
    1159    Total direct loan levels........           2           3           3
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................        7.72        7.72        7.72
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        7.72        7.72        7.72
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          93          13          20
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          93          13          20
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       48.25       48.25       48.25
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       48.25       48.25       48.25
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          45
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          45
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                       6          10
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                       6          10
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3590  Outlays from new authority........           1           1           1
    ---------------------------------------------------------------------------

        All information from the Native American Veterans Housing Loan
    program and the Guaranteed Transitional Housing Loans for Homeless
    Veterans program is consolidated in a single housing fund called the
    Miscellaneous Veterans Housing Loans Fund.

        The Native American Veterans Housing Loan program provides direct
    loans to veterans living on trust lands under 38 U.S.C. chapter 37,
    section 3761. These loans are available to purchase, construct or
    improve homes to be occupied as the veteran's residence. The principal
    amount of a loan under this authority is generally limited to $80,000,
    except in areas where housing costs are significantly higher than
    average costs nationwide. This is a pilot program that began in 1993 and
    is authorized through December 31, 2001.

        Public Law 105-368, the ``Veterans Benefits Improvement Act of
    1998,'' established a pilot project designed to expand the supply of
    transitional housing for homeless veterans and to guarantee up to 15
    investment loans with a maximum aggregate value of $100 million. Not
    more than five loans may be guaranteed in the first three years of the
    program. The project must enforce sobriety standards and provide a wide
    range of supportive services such as counseling for substance abuse and
    job readiness skills. Residents will be required to pay a reasonable
    fee.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for these programs, the subsidy costs associated with the
    direct loans obligated and the guaranteed loans committed in 1992 and
    beyond, as well as the administrative expenses of these programs. The
    subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

       Miscellaneous Veterans Housing Loans Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           2           3           3
    00.02 Interest on Treasury borrowing....           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           4           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New financing authority (gross)...           3           3           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           4           4
    23.95 Total new obligations.............          -3          -4          -4
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)           3           2           3
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           2           2           2
    68.47     Portion applied to repay debt.          -2          -1          -1
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....                       1           1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           3           3           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           3           4           4
    73.20 Total financing disbursements
            (gross).........................          -3          -4          -4
    87.00 Total financing disbursements
            (gross).........................           3           4           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayment of principal......          -1          -1          -1
    88.40       Interest received on loans..          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -2          -2
    ----------------------------------------------------------------------------

    [[Page 903]]

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           1           1           2
    90.00 Financing disbursements...........           1           2           2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1131  Direct loan obligations exempt
            from limitation.................           2           3           3
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           2           3           3
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          16          17          19
    1231  Disbursements: Direct loan
            disbursements...................           2           3           3
    1251  Repayments: Repayments and
            prepayments.....................          -2          -1          -2
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          17          19          20
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4130-0-3-704    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           1
            Investments in US securities:
    1106      Receivables, net..............                          1                            1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          17             17            19             20
    1402    Interest receivable.............                         -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          17             16            19             20
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          18             17            19             21
        LIABILITIES:
          Federal liabilities:

    2103    Federal liabilities debt........                         17            19             17
    2104    Resources payable to Treasury...          18
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          18             17            19             17
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          18             17            19             17
    -----------------------------------------------------------------------------------------------

        This account contains information on the Native American Veterans
    Housing Loan program.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligation in 1992 and beyond. The amounts
    in the account are means of financing and are not included in the budget
    totals.

     Miscellaneous Veterans Housing Loans Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4258-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   6
    22.00 New financing authority (gross)...                       6          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       6          16
    24.40 Unobligated balance carried
            forward, end of year............                       6          16
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       6          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Sources: Payments from
                Program Account.............                      -6         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -6         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -6         -10
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4258-0-3-704      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2131  Guaranteed loan commitments exempt
            from limitation.................                      13          20
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      13          20
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  13
    2231  Disbursements of new guaranteed
            loans...........................                      13          20
    2251  Repayments and prepayments........                                  -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      13          31
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      13          31
    ---------------------------------------------------------------------------

        This account contains information on the Guaranteed Transitional
    Housing Loans for Homeless Veterans program.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of guaranteed loans that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

            Miscellaneous Veterans Programs Loan Fund Program Account

                 Vocational Rehabilitation Loans Program Account

                          (including transfer of funds)

        For the cost of direct loans, [$52,000] $72,000, as authorized by 38
    U.S.C. chapter 31, as amended: Provided, That such costs, including the
    cost of modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That
    these funds are available to subsidize gross obligations for the
    principal amount of direct loans not to exceed [$2,726,000] $3,301,000.
        In addition, for administrative expenses necessary to carry out the
    direct loan program, [$432,000] $274,000, which may be transferred to
    and merged with the appropriation for ``General operating expenses''.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                       Education Loan Fund Program Account

                          (including transfer of funds)

        For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
    3698, as amended: Provided, That such costs, including the cost of
    modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974, as amended: Provided further, That
    these funds are available to subsidize gross obligations for the
    principal amount of direct loans not to exceed $3,400.
        In addition, for administrative expenses necessary to carry out the
    direct loan program, [$220,000] $64,000, which may be transferred to and
    merged with the appropriation for ``General operating expenses''.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0140-0-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Administrative expenses...........           1           1
                                               ---------   ---------  ----------

    [[Page 904]]

    10.00   Total new obligations (object
              class 25.3)...................           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           1           1
    23.95 Total new obligations.............          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           1
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           1           1
    73.20 Total outlays (gross).............          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           1
    90.00 Outlays...........................           1           1
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0140-0-1-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels, vocational
            rehabiliation...................           2           3           3
                                               ---------   ---------  ----------
    1159    Total direct loan levels........           2           3           3
        Direct loan subsidy (in percent):
    1320  Voc. Rehab. Loan subsidy rate.....        2.23        1.88        2.18
    1320  Education Loan subsidy rate.......       29.68       13.93        7.81
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        2.23        1.88        2.18
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1
    3590  Outlays...........................           1           1
    ---------------------------------------------------------------------------

        All information from the Vocational Rehabilitation Loan Program and
    Education Loan Fund is consolidated in a single housing fund called the
    Miscellaneous Veterans Programs Loan Fund.

        The Vocational Rehabilitation Loan Fund provides loans of up to $866
    (based on indexed Chapter 31 Subsistence allowance rate) to veterans
    enrolled in a program of vocational rehabilitation who are temporarily
    in need of additional funds to meet their expenses.

        The Education Loan program provides loans of up to $2,500 to
    dependents of veterans who are eligible for training benefits under
    chapter 35, title 38, U.S.C. and who are without sufficient funds to
    meet their education related expenses.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for these programs, the subsidy costs associated with the
    direct loans obligated in 1992 and beyond, as well as the administrative
    expenses of these programs. The subsidy amounts are estimated on a
    present value basis; the administrative expenses are estimated on a cash
    basis.

     Miscellaneous Veterans Programs Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4259-0-3-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...           4           6           6
    22.60 Portion applied to repay debt.....          -2          -3          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           3           3
    23.95 Total new obligations.............          -2          -3          -3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)           2           3           3
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           4           6           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           2           3           3
    73.20 Total financing disbursements
            (gross).........................          -2          -3          -3
    87.00 Total financing disbursements
            (gross).........................           2           3           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.40     Interest on loans.............          -2          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -3          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           2           3           3
    90.00 Financing disbursements...........
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4259-0-3-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           2           3           3
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           2           3           3
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           1
    1231  Disbursements: Direct loan
            disbursements...................           2           3           3
    1251  Repayments: Repayments and
            prepayments.....................          -2          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1           1           1
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   36-4259-0-3-702    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net          -1             -1            -1             -1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           1              1             1              1
    -----------------------------------------------------------------------------------------------

        This account contains information on the Vocational Rehabilitation
    Loan Program and Education Loan Fund.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from

    [[Page 905]]

    the Government resulting from direct loans obligated in 1992 and beyond.
    The amounts in the account are means of financing and are not included
    in the budget totals.

                                   Trust Funds

                   Post-Vietnam Era Veterans Education Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Deductions from military pay......           2           1           1
    02.40 Contributions.....................           2           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           4           2           2
        Appropriations:
    05.00 Post-Vietnam era veterans
            education account...............          -4          -2          -2
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -4          -2          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to post-Vietnam era
            trainees........................           4           4           4
    00.03 Participant disenrollments........           9          11           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          13          15          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         106          97          84
    22.00 New budget authority (gross)......           4           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         110          99          86
    23.95 Total new obligations.............         -13         -15         -13
    24.40 Unobligated balance carried
            forward, end of year............          97          84          73
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.27   Appropriation (trust fund,
              indefinite)...................          13          13          11
    60.45   Portion precluded from
              obligation....................          -9         -11          -9
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           4           2           2
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           2           1           1
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           2           1           1
    73.10 Total new obligations.............          13          15          13
    73.20 Total outlays (gross).............         -13         -15         -12
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           1           1           2
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           1           1           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           4           2           2
    86.98 Outlays from mandatory balances...           9          13          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          15          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           2           2
    90.00 Outlays...........................          13          15          12
    ---------------------------------------------------------------------------

        This account consists of voluntary contributions by eligible
    servicepersons and matching contributions provided by the Department of
    Defense. The fund provides educational assistance payments to
    participants who entered the service after December 31, 1976, and are
    pursuing training under chapter 32, title 38, U.S.C. Section 901 is a
    non-contributory program with educational assistance provided by the
    Department of Defense. Public Law 99-576, enacted October 28, 1986,
    closed the program permanently for new enrollments effective March 31,
    1987. Public Law 106-419, enacted November 1, 2000, provides qualified
    participants in this program another opportunity (through October 31,
    2001) to convert to the All-Volunteer Force Educational Assistance
    program (Montgomery GI Bill). The estimated activity in the fund
    follows:

        CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                            [In millions of dollars]

                                         2000 actual  2001 est.   2002 est.

    Total budget authority..............          $4          $2          $2
      Servicepersons....................          $2          $1          $1
      Transferred from Department of
        Defense (bonus).................          $0          $1          $1
      Transferred from Department of
        Defense (matching)..............          $1          $1          $0
      Transferred from Department of
        Defense (section 901)...........          $1          $0          $0
    Total participants (end of year)....     221,385     210,385     200,385
    Total contributors (end of year)....       2,382       1,600         700
    Average contribution per contributor
    (actual dollars)....................        $923        $923        $923
    Number of disenrollments............      10,646      12,600      10,700
    Total refunds.......................          $9         $11          $9
    Total trainees......................       2,522       1,680       1,180
    Total trainee cost..................          $4          $4          $4
    Average cost per trainee (actual
    dollars)............................      $1,506      $2,476      $2,966
    Section 901 trainees................          23          20          20

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    41.0  Grants, subsidies, and
            contributions...................           4           4           4
    44.0  Refunds...........................           9          11           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          13          15          13
    ---------------------------------------------------------------------------

                      National Service Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............      10,572      10,425      10,188
        Receipts:
    02.20 Premium and other receipts........         201         190         179
    02.40 Interest..........................         887         854         816
    02.41 Payments from general and special
            funds...........................           1           1           1
    02.80 National Service Life Insurance
            fund, offsetting collections....         497         481         454
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       1,586       1,526       1,450
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      12,158      11,951      11,638
        Appropriations:
    05.00 National Service Life Insurance
            fund............................      -1,733      -1,763      -1,768
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -1,733      -1,763      -1,768
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      10,425      10,188       9,870
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct:

            Operating expenses:
    00.01     Death claims..................         612         658         703
    00.02     Disability claims.............          15          14          13
    00.03     Matured endowments............           7           6           8
    00.04     Cash surrenders...............          27          30          32
    00.05     Dividends.....................         408         388         369
    00.06     Interest paid on dividend
                credits and deposits........          38          57          59
    00.07     Payment to general operating
                expenses....................          21          22          22
                                               ---------   ---------  ----------
    00.91       Total operating expenses....       1,128       1,175       1,206
    02.01 Capital investment: Policy loans..         108         107         107
                                               ---------   ---------  ----------
    02.93   Total direct obligations........       1,236       1,282       1,313
          Reimbursable program:

    09.01   Death claims....................         261         243         225
    09.01   Disability claims...............           7           6           6
    09.01   Matured endowments..............           3           3           4
    09.01   Cash surrenders.................          13          14          15
    09.01   Dividends.......................         186         179         168
    09.01   Interest paid on dividend
              credits and deposits..........          17          26          27

    [[Page 906]]

    09.01   Payment to general operating
              expenses......................          10          10          10
                                               ---------   ---------  ----------
    09.09     Reimbursable program..........         497         481         455
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,733       1,763       1,768
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,733       1,763       1,768
    23.95 Total new obligations.............      -1,733      -1,763      -1,768
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.27   Appropriation (trust fund,
              indefinite)...................       1,090       1,046         996
    69.00 Offsetting collections (cash).....         497         481         454
    69.26 From offsetting collections
            (unavailable balances)..........         146         236         318
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         643         717         772
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,733       1,763       1,768
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       1,390       1,385       1,377
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,390       1,385       1,377
    73.10 Total new obligations.............       1,733       1,763       1,768
    73.20 Total outlays (gross).............      -1,738      -1,771      -1,776
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       1,385       1,377       1,369
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       1,385       1,377       1,369
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,587       1,527       1,450
    86.98 Outlays from mandatory balances...         151         244         326
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,738       1,771       1,776
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of loans.........        -123        -119        -117
    88.40       Optional settlements........          -3          -2          -2
    88.40       Net income offsets
                  adjustments...............        -371        -360        -335
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -497        -481        -454
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,236       1,282       1,314
    90.00 Outlays...........................       1,242       1,290       1,322
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      11,954      11,804      11,561
    92.02 Total investments, end of year:
            Federal securities: Par value...      11,804      11,561      11,234
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund was established in 1940. It is for the World War II
    servicemen's and veterans' insurance program. Over 22 million policies
    have been issued under this program. Activity of the fund reflects a
    rising claim workload. The trend in the number and amount of policies in
    force is shown as follows:

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.

    Number of policies..................   1,715,536   1,609,680   1,503,100
    Insurance in force (dollars in
    millions)...........................      17,013      16,269      15,502

        This fund is operated on a commercial basis to the extent possible.
    The income of the fund is derived from premium receipts, interest on
    investments, and payments which are made to the fund from the Veterans
    insurance and indemnities appropriation.

        Assets of the fund, which are largely invested in special interest-
    bearing Treasury securities and in policy loans, are expected to
    decrease from $12,507 million as of September 30, 2001 to $12,209
    million as of September 30, 2002. The actuarial estimate of policy
    obligations as of September 30, 2002, total $11,193 million, leaving a
    balance of $296 million for contingency reserves.

        The status of the fund, excluding noncash transactions, is as
    follows:

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Uninvested balance [unavailable
            collections]....................           9           6           4
    0101  U.S. Securities: Par value........      11,954      11,804      11,561
                                               ---------   ---------  ----------
    0199    Total balance, start of year....      11,962      11,810      11,565
        Cash income during the year:
          Current law:

            Offsetting receipts
                (proprietary):
    1220      NSLI fund, premium and other
                receipts....................         201         190         179
            Offsetting receipts
                (intragovernmental):
    1240      NSLI fund,interest............         887         854         816
    1241      NSLI fund, payments from
                general and special funds...           1           1           1
            Offsetting collections:
    1280      NSLI fund, offsetting
                collections.................         497         481         454
    1299    Income under present law........       1,586       1,526       1,450
        Cash outgo during year:
          Current law:

    4500    National service life insurance
              fund..........................      -1,738      -1,771      -1,776
        Unexpended balance, end of year:
    8700  Uninvested balance................           6           4           5
    8701  Federal securities: Par value.....      11,804      11,561      11,234
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      11,810      11,565      11,239
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    33.0    Investments and loans...........         108         107         107
    42.0    Insurance claims and indemnities         661         708         756
    43.0    Interest and dividends..........         467         467         450
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..       1,236       1,282       1,313
    99.0  Reimbursable obligations..........         497         481         455
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,733       1,763       1,768
    ---------------------------------------------------------------------------

                  United States Government Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          61          55          50
        Receipts:
    02.40 Interest and profits on
            investments in public debt
            securities......................           5           5           4
    02.80 United States government life
            insurance fund, offsetting
            collections.....................           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           6           6           5
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          67          61          55
        Appropriations:
    05.00 United States government life
            insurance fund..................         -12         -11         -11
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -12         -11         -11
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          55          50          44
    ---------------------------------------------------------------------------

    [[Page 907]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.01   Death claims....................           2           2           2
    00.05   Dividends.......................           1           1
    00.06   Interest paid on dividend
              credits and deposits..........           1           1           1
    00.07   Other costs.....................           1           1           1
    09.01 Death Claims......................           4           4           4
    09.02 Dividends.........................           3           2           3
                                               ---------   ---------  ----------
    09.09   Reimbursable program............           7           6           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          12          11          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12          11          11
    23.95 Total new obligations.............         -12         -11         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.27   Appropriation (trust fund,
              indefinite)...................           5           5           4
    69.00 Offsetting collections (cash).....           1           1           1
    69.26 From offsetting collections
            (unavailable balances)..........           6           5           6
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           7           6           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12          11          11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          19          19          18
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          19          19          18
    73.10 Total new obligations.............          12          11          11
    73.20 Total outlays (gross).............         -12         -12         -12
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          19          18          17
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          19          18          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           6           5
    86.98 Outlays from mandatory balances...           6           6           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          12          12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Repayments of loans.....          -1          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11          10          10
    90.00 Outlays...........................          11          11          11
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          80          73          68
    92.02 Total investments, end of year:
            Federal securities: Par value...          73          68          62
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund was established in 1919 to receive premiums and pay claims
    on insurance issued under the provisions of the War Risk Insurance Act.
    The general decline in the activity of the fund is indicated in the
    following table:

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.
    Number of policies..................      16,280      14,600      12,970
    Insurance in force (dollars in
    millions)...........................          53          48          42

        The fund is operated on a commercial basis to the extent possible.
    The income of the fund is derived from interest on investments and
    payments from the Veterans insurance and indemnities appropriation.
    Effective January 1, 1983, premiums were discontinued because reserves
    held in the fund were adequate to meet future liabilities of the
    program.

        Assets of the fund, which are largely invested in interest-bearing
    securities and policy loans, are estimated to decrease from $72 million
    as of September 30, 2001, to $65 million as of September 30, 2002, as an
    increasing number of policies mature through death or disability. The
    actuarial evaluation of policy obligations as of September 30, 2002,
    totals $63 million, leaving a balance of $2 million for contingency
    reserves.

        The status of the fund, excluding noncash transactions, is as
    follows:

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0101  U.S. Securities: Par value........          80          73          68
                                               ---------   ---------  ----------
    0199    Total balance, start of year....          80          74          68
        Cash income during the year:
          Current law:

            Offsetting receipts
                (intragovernmental):
    1240      Interest and profits on
                investments in public debt
                securities, USGLI, VA.......           5           5           4
            Offsetting collections:
    1280      Offsetting collections, USGLI.           1           1           1
    1299    Income under present law........           6           6           5
        Cash outgo during year:
          Current law:

    4500    United States government life
              insurance fund................         -12         -12         -12
        Unexpended balance, end of year:
    8701  Federal securities: Par value.....          73          68          62
                                               ---------   ---------  ----------
    8799    Total balance, end of year......          74          68          61
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    42.0    Insurance claims and indemnities           3           3           2
    43.0    Interest and dividends..........           2           2           2
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..           5           5           4
    99.0  Reimbursable obligations..........           7           6           7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          12          11          11
    ---------------------------------------------------------------------------

                      Veterans Special Life Insurance Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............       1,439       1,462       1,481
        Receipts:
    02.80 Veterans special life insurance
            fund, offsetting collections....         235         232         228
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,674       1,694       1,709
        Appropriations:
    05.00 Veterans special life insurance
            fund............................        -212        -213        -214
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -212        -213        -214
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       1,462       1,481       1,495
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Death claims......................          53          58          58
    09.01 Cash surrenders...................           5           5           5
    09.01 Dividends.........................          96          94          94
    09.01 All other.........................          33          31          32
    09.01 Payment to general operating
            expenses account................           5           5           5
    09.02 Capital investment................          20          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         212         213         214
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         212         213         214

    [[Page 908]]

    23.95 Total new obligations.............        -212        -213        -214
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         235         232         228
    69.26   From offsetting collections
              (unavailable balances)........         -23         -19         -14
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         212         213         214
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         229         249         264
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         229         249         264
    73.10 Total new obligations.............         212         213         214
    73.20 Total outlays (gross).............        -192        -198        -197
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         249         264         281
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         249         264         281
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          17          19          14
    86.98 Outlays from mandatory balances...         175         180         183
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         192         198         197
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Interest on loans...........          -5          -6          -6
    88.40       Insurance premiums earned...         -68         -66         -64
    88.40       Optional settlements........                      -1
    88.40       Repayments of loans.........         -17         -17         -17
    88.45     Offsetting governmental
                collections from the public.        -145        -142        -141
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -235        -232        -228
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -23         -19         -14
    90.00 Outlays...........................         -43         -34         -31
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       1,666       1,709       1,743
    92.02 Total investments, end of year:
            Federal securities: Par value...       1,709       1,743       1,777
    ---------------------------------------------------------------------------
        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund finances the payment of claims on life insurance policies
    issued before January 3, 1957, to veterans who served in the Armed
    Forces subsequent to April 1, 1951. No new policies can be issued.
    Policyholders may elect to purchase total disability income coverage
    with the payment of additional premiums.

        Budget program--
            Death claims.--Represents payments to designated beneficiaries.
            Cash surrenders.--A policyholder may terminate his or her
        insurance by cashing in the policy for its cash value.
            Dividends.--Policyholders participate in the distribution of
        annual dividends.
            All other.--Classified in this category are payments to
        policyholders who: (a) hold endowment policies which have matured;
        (b) have purchased total disability income coverage and subsequently
        become disabled; and (c) are paid interest on dividend credits and
        deposits.
            The following table reflects the decrease in the number of
        policies and the amounts of insurance in force:

                         POLICIES AND INSURANCE IN FORCE

                                         2000 actual  2001 est.   2002 est.
    Number of policies..................     242,608     237,160     231,670
    Insurance in force (dollars in
    millions)...........................       2,669       2,635       2,595

        Financing.--Payments from this fund are financed primarily  from
    premium  receipts  and  interest  on investments.

        Operating results and financial condition.--Lower than expected
    death rates on insurance written against this fund has kept death claim
    payments well below the amount of premium and interest receipts, thereby
    producing an annual increase in the total revenue of the fund. Excess
    earnings of the fund are now distributed to the policyholders in the
    form of an annual dividend.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          20          20          20
    42.0  Insurance claims and indemnities..          76          78          79
    43.0  Interest and dividends............         116         115         115
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         212         213         214
    ---------------------------------------------------------------------------

                                  CONSTRUCTION

                                  Federal Funds

    General and special funds:

                          Construction, Major Projects

        For constructing, altering, extending and improving any of the
    facilities under the jurisdiction or for the use of the Department of
    Veterans Affairs, or for any of the purposes set forth in sections 316,
    2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38,
    United States Code, including planning, architectural and engineering
    services, maintenance or guarantee period services costs associated with
    equipment guarantees provided under the project, services of claims
    analysts, offsite utility and storm drainage system construction costs,
    and site acquisition, where the estimated cost of a project is
    $4,000,000 or more or where funds for a project were made available in a
    previous major project appropriation, [$66,040,000] $183,180,000, to
    remain available until expended, of which $60,000,000 shall be for
    Capital Asset Realignment for Enhanced Services (CARES) activities; and
    of which not to exceed $20,000,000 shall be for costs associated with
    land acquisitions for national cemeteries in the vicinity of Sacramento,
    California, Pittsburgh, Pennsylvania, and Detroit, Michigan: Provided,
    That except for advance planning [of projects] activities (including
    market-based and other assessments of [health care] needs which may [or
    may not] lead to capital investments) funded through the advance
    planning fund, [and the] design of projects funded through the design
    fund, and planning and design activities funded through the CARES fund
    (including market-based and other assessments of needs which may lead to
    capital investments), none of these funds shall be used for any project
    which has not been [considered and] approved by the Congress in the
    budgetary process: Provided further, That funds provided in this
    appropriation for fiscal year [2001] 2002, for each approved project
    (except those for CARES activities and the three land acquisitions
    referenced above) shall be obligated: (1) by the awarding of a
    construction documents contract by September 30, [2001] 2002; and (2) by
    the awarding of a construction contract by September 30, [2002] 2003:
    Provided further, That the Secretary shall promptly report in writing to
    the Committees on Appropriations any approved major construction project
    in which obligations are not incurred within the time limitations
    established above: Provided further, That no funds from any other
    account except the ``Parking revolving fund'', may be obligated for
    constructing, altering, extending, or improving a project which was
    approved in the budget process and funded in this account until one year
    after substantial completion and beneficial occupancy by the Department
    of Veterans Affairs of the project or any part thereof with respect to
    that part only. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

    [[Page 909]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Replacement and modernization.....          38          15          23
    00.02 Clinical Improvements.............          34           1           1
    00.06 Other improvements................         121         135          98
    00.07 National cemeteries...............          19           9          65
    00.08 Replacement or renovation of
            regional offices................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         213         161         188
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         565         417         322
    22.00 New budget authority (gross)......          65          66         183
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         630         483         505
    23.95 Total new obligations.............        -213        -161        -188
    24.40 Unobligated balance carried
            forward, end of year............         417         322         317
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          65          66         183
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          65          66         183
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         258         299         318
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         258         299         318
    73.10 Total new obligations.............         213         161         188
    73.20 Total outlays (gross).............        -172        -142        -107
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         299         318         399
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         299         318         399
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3           8
    86.93 Outlays from discretionary
            balances........................         169         138          99
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         172         142         107
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          65          66         183
    90.00 Outlays...........................         172         142         107
    ---------------------------------------------------------------------------

        Funds are requested for: an emergency electrical project at Miami,
    Florida; activities related to CARES; a new cemetery at Atlanta,
    Georgia; cemetery expansion projects at Massachusetts National Cemetery
    and Tahoma, Washington; and land acquisition for new cemeteries in the
    vicinity of Sacramento, California; Pittsburgh, Pennsylvania; and
    Detroit, Michigan.

        Additional funds are provided to remove asbestos from Department-
    owned buildings and to support advanced planning (including assessments
    of needs) and design activities.

                         Department of Veterans Affairs

                      Budget Authority by Program Activity

                            [In millions of dollars]

                                         2000 actual  2001 est.   2002 est.
    Clinical improvements...............          31
    General.............................                                  78
    Patient environment.................          18           1
    Other departments...................          24          68         105
    Design fund offset..................         (1)         (1)
    Less rescission.....................
    Reprogramming.......................         (7)         (2)
                                        ------------------------------------
          Total budget authority........          65          66
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    11.3  Personnel compensation: Other than
            full-time permanent.............           2           2           2
    25.2  Other services....................          45          40          45
    26.0  Supplies and materials............           2           3           3
    31.0  Equipment.........................           2           2           3
    32.0  Land and structures...............         162         114         135
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         213         161         188
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          21          50          50
    ---------------------------------------------------------------------------

                          Construction, Minor Projects

        For constructing, altering, extending, and improving any of the
    facilities under the jurisdiction or for the use of the Department of
    Veterans Affairs, including planning and assessments of needs which may
    lead to capital investments, architectural and engineering services,
    maintenance or guarantee period services costs associated with equipment
    guarantees provided under the project, services of claims analysts,
    offsite utility and storm drainage system construction costs, and site
    acquisition, or for any of the purposes set forth in sections 316, 2404,
    2406, 8102, 8103, 8106, 8108, 8109, 8110, 8122, and 8162 of title 38,
    United States Code, where the estimated cost of a project is less than
    $4,000,000, [$162,000,000] $178,900,000, to remain available until
    expended, along with unobligated balances of previous ``Construction,
    minor projects'' appropriations which are hereby made available for any
    project where the estimated cost is less than $4,000,000, of which
    $25,000,000 shall be for Capital Asset Realignment for Enhanced Services
    (CARES) activities: Provided, That from amounts appropriated under this
    heading, additional amounts may be used for CARES activities: Provided
    further, That funds in this account shall be available for: (1) repairs
    to any of the nonmedical facilities under the jurisdiction or for the
    use of the department which are necessary because of loss or damage
    caused by any natural disaster or catastrophe; and (2) temporary
    measures necessary to prevent or to minimize further loss by such
    causes. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)
        [For an additional amount for ``Construction, minor projects'',
    $8,840,000, to remain available until expended.] (Division A,
    Miscellaneous Appropriations Act, 2001, as enacted by section 1(a)(4) of
    P.L. 106-554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Medical programs..................         128         136         154
    00.06 National cemeteries...............          11          28          20
    00.07 Staff Offices.....................           4           7           8
    00.08 Replacement or renovation of
            regional offices................           4          10          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         147         181         193
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          44          56          41
    22.00 New budget authority (gross)......         160         166         179
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         204         222         220
    23.95 Total new obligations.............        -147        -181        -193
    24.40 Unobligated balance carried
            forward, end of year............          56          41          27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         160         162         179
    40.00     Appropriation (omnibus
                legislation)................                       9
    41.00   Transferred to other accounts...                      -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         160         166         179
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         231         215         231
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         231         215         231
    73.10 Total new obligations.............         147         181         193

    [[Page 910]]

    73.20 Total outlays (gross).............        -164        -167        -168
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         215         231         256
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         215         231         256
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          42          43          47
    86.93 Outlays from discretionary
            balances........................         121         124         122
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         164         167         168
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         160         166         179
    90.00 Outlays...........................         164         167         168
    ---------------------------------------------------------------------------

        The Construction, Minor Projects appropriation, which funds
    construction projects costing less than $4 million, is used to reduce
    risks to patient life and safety, correct code deficiencies, improve
    ambulatory care settings, and improve national cemeteries and regional
    and staff offices.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    11.3  Personnel compensation: Other than
            full-time permanent.............           2           2           2
    25.2  Other services....................          15          16          18
    26.0  Supplies and materials............           2           2           2
    32.0  Land and structures...............         128         161         171
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         147         181         193
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          50          80          80
    ---------------------------------------------------------------------------

            Grants for Construction of State Extended Care Facilities

        For grants to assist States to acquire or construct State nursing
    home and domiciliary facilities and to remodel, modify or alter existing
    hospital, nursing home and domiciliary facilities in State homes, for
    furnishing care to veterans as authorized by 38 U.S.C. 8131-8137,
    [$100,000,000] $50,000,000, to remain available until expended.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0181-0-1-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to States..................          16         203          74
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          16         203          74
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          53         127          24
    22.00 New budget authority (gross)......          90         100          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         143         227          74
    23.95 Total new obligations.............         -16        -203         -74
    24.40 Unobligated balance carried
            forward, end of year............         127          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          90         100          50
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          90         100          50
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         150          62         181
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         150          62         181
    73.10 Total new obligations.............          16         203          74
    73.20 Total outlays (gross).............        -104         -85         -91
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          62         181         163
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          62         181         163
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         104          85          91
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          90         100          50
    90.00 Outlays...........................         104          85          91
    ---------------------------------------------------------------------------

        In 2001, the Department plans to obligate $203 million to acquire or
    construct State home facilities for furnishing domiciliary or nursing
    home care to veterans and expand, remodel, or alter existing buildings
    for furnishing domiciliary, nursing home, or hospital care to veterans.

            Grants for the Construction of State Veterans Cemeteries

        For grants to aid States in establishing, expanding, or improving
    State veterans cemeteries as authorized by 38 U.S.C. 2408, $25,000,000,
    to remain available until expended. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0183-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants to States..................          19          41          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          19          41          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9          16
    22.00 New budget authority (gross)......          25          25          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          41          25
    23.95 Total new obligations.............         -19         -41         -25
    24.40 Unobligated balance carried
            forward, end of year............          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          15          22          45
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          15          22          45
    73.10 Total new obligations.............          19          41          25
    73.20 Total outlays (gross).............         -12         -17         -21
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          22          45          49
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          22          45          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3
    86.93 Outlays from discretionary
            balances........................           9          16          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          17          21
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25          25
    90.00 Outlays...........................          12          17          21
    ---------------------------------------------------------------------------

        This program enables the Department to assist States in
    establishing, expanding, or improving State-operated veterans
    cemeteries.

    [[Page 911]]

    Public enterprise funds:

                             Parking Revolving Fund

        For the parking revolving fund as authorized by 38 U.S.C. 8109,
    income from fees collected[,] and $4,000,000 from the General Fund, both
    to remain available until expended, which shall be available for all
    authorized expenses except operations and maintenance costs, which will
    be funded from ``Medical care''. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4538-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses: parking leases           2           2           3
    09.01 Capital Investment: parking
            construction program............           3           6           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           5           8          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          12          14
    22.00 New budget authority (gross)......           3          10           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17          22          21
    23.95 Total new obligations.............          -5          -8         -11
    24.40 Unobligated balance carried
            forward, end of year............          12          14          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                   4
    42.00   Transferred from other accounts.                       7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                       7           4
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           3          10           7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          16           3           4
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          16           3           4
    73.10 Total new obligations.............           5           8          11
    73.20 Total outlays (gross).............         -18          -7          -7
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           3           4           8
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           3           4           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3           3
    86.93 Outlays from discretionary
            balances........................          15           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18           7           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3          -3          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       7           4
    90.00 Outlays...........................          15           4           4
    ---------------------------------------------------------------------------

        The Parking Revolving Fund provides funding for the construction and
    lease of parking facilities and surface parking at various medical
    centers.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4538-0-3-703      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    23.2  Direct obligations: Rental
            payments to others..............           2           2           2
    32.0  Reimbursable obligations: Land and
            structures......................           3           6           9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           5           8          11
    ---------------------------------------------------------------------------

                          Pershing Hall Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4018-0-3-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The Pershing Hall Revolving Fund was created to operate and manage
    Pershing Hall, an asset of the United States, located in Paris, France.
    All operating expenses for Pershing Hall are borne by the revolving fund
    and all receipts generated by the operation of Pershing Hall are
    deposited in the revolving fund.

        To facilitate account restructuring and consolidation, the Pershing
    Hall Revolving Fund also reflects budget information for the Nursing
    Home Revolving Fund. The Nursing Home Revolving Fund provides for the
    construction, alteration, and acquisition (including site acquisition)
    of nursing home facilities and is available only as provided in
    appropriations acts.

                           DEPARTMENTAL ADMINISTRATION

                           General Operating Expenses

        For necessary operating expenses of the Department of Veterans
    Affairs, not otherwise provided for, including uniforms or allowances
    therefor; not to exceed $25,000 for official reception and
    representation expenses; hire of passenger motor vehicles; and
    reimbursement of the General Services Administration for security guard
    services, and the Department of Defense for the cost of overseas
    employee mail, [$1,050,000,000] $1,194,831,000: Provided, That expenses
    for services and assistance authorized under 38 U.S.C. 3104(a)(1), (2),
    (5) and (11) that the Secretary determines are necessary to enable
    entitled veterans (1) to the maximum extent feasible, to become
    employable and to obtain and maintain suitable employment; or (2) to
    achieve maximum independence in daily living, shall be charged to this
    account: Provided further, That of the funds made available under this
    heading, not to exceed [$45,000,000] $60,000,000 shall be available
    until September 30, [2002: Provided further, That funds under this
    heading shall be available to administer the Service Members
    Occupational Conversion and Training Act] 2003: Provided further, That
    of the funds made available under this heading, the Veterans Benefits
    Administration may purchase up to four passenger motor vehicles for use
    in their Manila, Philippines operation. (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Veterans benefits:
    00.04     Compensation and pensions.....         553         639         733
    00.05     Education.....................          65          68          91
    00.06     Vocational rehabilitation and
                counseling..................          80         117         128
    00.09     Insurance\1\..................           3           3           4
    00.11     General administration........         235         258         239
                                               ---------   ---------  ----------
    01.00   Total Direct Program............         936       1,085       1,195
          Reimbursable program:

    09.01   Administration of housing credit
              programs......................         157         162         164
    09.02   Administration of other credit
              programs......................           1           1           1
    09.03   Administration of insurance
              programs......................          37          39          39
    09.04   Other reimbursable programs.....          94         175         191
                                               ---------   ---------  ----------
    09.99     Total reimbursable program....         289         377         395
                                               ---------   ---------  ----------

    [[Page 912]]

    10.00   Total new obligations...........       1,225       1,462       1,590
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       4
    22.00 New budget authority (gross)......       1,230       1,457       1,590
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,230       1,461       1,590
    23.95 Total new obligations.............      -1,225      -1,462      -1,590
    24.40 Unobligated balance carried
            forward, end of year............           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         913       1,050       1,195
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -2
    42.00   Transferred from other accounts.          28          32
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         941       1,080       1,195
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         289         377         395
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         289         377         395
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,230       1,457       1,590
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         142         190         108
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         142         190         108
    73.10 Total new obligations.............       1,225       1,462       1,590
    73.20 Total outlays (gross).............      -1,170      -1,543      -1,578
    73.40 Adjustments in expired accounts
            (net)...........................          -8
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         190         108         119
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         190         108         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,036       1,349       1,471
    86.93 Outlays from discretionary
            balances........................         134         194         108
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,170       1,543       1,578
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -289        -377        -395
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         941       1,080       1,195
    90.00 Outlays...........................         881       1,166       1,183
    ---------------------------------------------------------------------------
        \1\ The total cost of administering veterans insurance programs is
    funded through direct appropriations to this account and through
    reimbursements from the insurance trust fund.

        This appropriation provides for the administration of nonmedical
    veterans benefits through the Veterans Benefits Administration (VBA) and
    the Department's top management direction and administrative support,
    including data processing, fiscal, personnel, and legal services.

        Veterans benefits.--Determines eligibility and adjudicates all
    claims for compensation, pensions, educational assistance, housing loan
    assistance, and insurance awards. A summary of VBA's program objectives
    and anticipated workload is included in the following paragraphs.
    Workload data for this program is shown below. Specific performance
    goals relating to the processing of veterans benefits are contained in
    VA's annual performance plan.

        Compensation and pensions.--Provides processing of claims for
    veterans and dependents relating to compensation and pension benefits
    under the various laws enacted by Congress.

                                    WORKLOAD

                         [Claims completed in thousands]

                                         2000 actual  2001 est.   2002 est.
    Compensation:
      Rating-Related Actions \1\........         500         485         471
      Non Rating Actions \2\............         203         199         195
    Pension:
      Rating-Related Actions \1\........         101          98          95
      Non Rating Actions \2\............         575         564         552
        \1\ Rating related actions include original compensation claims (EP
    010/110), original DIC claims (EP 140), original pensions claims (EP
    180), reopened compensation claims (EP 020), reopened pension claims (EP
    120), routine examinations (EP 310), and reviews due to hospitalizations
    (EP 320).
        \2\ Non Rating actions include dependency issues (EP 130), income
    issues (EP 150), IVM (EP 154), EVR (EP 155, burial/plot claims (EP 160),
    claims for accrued benefits (EP 165), original death pension claims (EP
    190), and special eligibility determinations (EP 290).

        Education.--Provides timely and efficient processing of claims for
    veterans and dependents relating to education benefits under the various
    laws enacted by Congress.

                                    WORKLOAD

                                 [In thousands]

                                         2000 actual  2001 est.   2002 est.
    Education:
      Original claims...................         128         199         241
      Adjustments/supplemental claims...         810       1,015       1,225

         Loan guaranty.--Facilitates the extension of private capital, on
    more liberal terms than generally available to nonveterans, to: assist
    veterans and servicepersons in obtaining housing credits; provide grants
    to aid permanently and totally disabled veterans in acquiring specially
    adapted housing; and assist veterans in retaining their homes during
    periods of temporary economic difficulty through intensive supplemental
    mortgage loan servicing.

                                    WORKLOAD

                                 [In thousands]

                                         2000 actual  2001 est.   2002 est.
    Loan guaranty:
      Construction and valuation (number
        of reviews).....................         286         280         275
      Loan processing (number of loans).         608         668         660
      Loan service and claims (number of
        loans and claims)...............         260         265         270
      Property management (number of
        properties).....................          61          60          58

        Vocational rehabilitation and employment.--Provides counseling and
    assistance to enable veterans with service-connected disabilities to
    achieve maximum independence in daily living and, to the maximum extent
    feasible, obtain and maintain suitable employment.

                                    WORKLOAD

                                 [In thousands]

                                         2000 actual  2001 est.   2002 est.
    Vocational rehabilitation and
        employment:
      Evaluation and planning...........          57          58          59
      Rehabilitation services...........          64          66          67
      Employment services status........          16          16          16
      Vocational/educational counseling.          10          10          10

        Insurance.--Provides life insurance protection for servicepersons
    and veterans. The VA administers six life insurance programs and
    supervises two others through a contractual agreement with a commercial
    company.

                                    WORKLOAD

                                 [In thousands]

                                         2000 actual  2001 est.   2002 est.
    Insurance:
      Policy service actions............       1,043       1,011         979
      Collections.......................       2,905       2,769       2,648
      Disability claims.................          11          12          11
      Insurance awards..................       1,168         912         461

        General administration.--Includes Departmental executive direction
    and supporting offices, the General Counsel, the Board of Veterans
    Appeals, and the Board of Contract Appeals.

    [[Page 913]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         538         574         663
    11.5      Other personnel compensation..          15          12          13
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         553         586         676
    12.1    Civilian personnel benefits.....         121         129         153
    13.0    Benefits for former personnel...           4           3           2
            Travel and transportation of
                persons:
    21.0      Employee travel...............          12          12          12
    21.0      Interagency motor pool
                payments....................           2           2           2
    22.0    Transportation of things........           1           2           2
    23.1    Rental payments to GSA..........          73          78          90
    23.2    Rental payments to others.......           6           7           9
    23.3    Communications, utilities, and
              miscellaneous charges.........          56          74          42
    24.0    Printing and reproduction.......           3           2           3
    25.2    Other services..................          82         138         165
    26.0    Supplies and materials..........          12          13           9
    31.0    Equipment.......................          11          39          30
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         936       1,085       1,195
    99.0  Reimbursable obligations..........         289         377         395
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,225       1,462       1,590
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment\1\...      10,677      11,583      12,245
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       3,138       2,975       3,242
    ---------------------------------------------------------------------------
        \1\ Reflects FTE treated as reimbursements in all years and the
    effects of Credit Reform, per P.L. 101-508.

                           Office of Inspector General

                         [(including transfer of funds)]

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended,
    [$46,464,000: Provided, That of the amount made available under this
    heading, not to exceed $28,000 may be transferred to and merged with the
    appropriation for ``General operating expenses''] $48,308,000.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct program....................          43          46          48
    09.00 Reimbursable program..............           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45          49          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          45          49          51
    23.95 Total new obligations.............         -45         -49         -51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          43          46          48
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          45          49          51
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           8          11           7
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           8          11           7
    73.10 Total new obligations.............          45          49          51
    73.20 Total outlays (gross).............         -41         -53         -51
    73.40 Adjustments in expired accounts
            (net)...........................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          11           7           7
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          11           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          38          47          49
    86.93 Outlays from discretionary
            balances........................           5           6           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          41          53          51
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -3          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          43          46          48
    90.00 Outlays...........................          39          50          48
    ---------------------------------------------------------------------------

        This appropriation provides Department-wide audit, investigation,
    and essential inspection and support functions to identify and report
    weaknesses and deficiencies in VA programs and operations that create
    conditions for existing or potential instances of fraud, waste, and
    mismanagement. The audit function plans and conducts internal
    programmatic audits of all facets of VA operations as well as contract
    audit services for all applicable Department contracts. The
    investigative function conducts proactive and reactive criminal and
    administrative investigations of improper and illegal activities
    involving VA programs, personnel, beneficiaries, and other third
    parties. The healthcare inspection function performs legislatively
    mandated medical care quality assurance reviews and oversight. The
    support function provides normal office administrative support.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          25          29          31
    12.1    Civilian personnel benefits.....           6           6           7
    21.0    Travel and transportation of
              persons.......................           2           2           3
    23.1    Rental payments to GSA..........           2           2           2
    25.2    Other services..................           8           7           5
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          43          46          48
    99.0  Reimbursable obligations..........           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45          49          51
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         335         369         366
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          19          24          24
    ---------------------------------------------------------------------------

                        National Cemetery Administration

                         [(including transfer of funds)]

        For necessary expenses [for the maintenance and operation of the
    National Cemetery Administration] of the National Cemetery
    Administration for operations and maintenance, not otherwise provided
    for, including uniforms or allowances therefor; cemeterial expenses as
    authorized by law; purchase of [two] one passenger motor [vehicles]
    vehicle for use in cemeterial operations; and hire of passenger motor
    vehicles, [$109,889,000: Provided, That travel expenses shall not exceed
    $1,125,000: Provided further, That of the amount made available under
    this heading, not to exceed $125,000 may be transferred to and merged
    with the appropriation for ``General operating expenses''] $121,169,000.
    (Departments of Veterans Affairs and Housing and

    [[Page 914]]

    Urban Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct obligations................          97         110         121
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          97         110         121
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          97         110         121
    23.95 Total new obligations.............         -97        -110        -121
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          97         110         121
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          15          16          17
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          15          16          17
    73.10 Total new obligations.............          97         110         121
    73.20 Total outlays (gross).............         -95        -109        -120
    73.40 Adjustments in expired accounts
            (net)...........................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          16          17          18
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          16          17          18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          83          99         109
    86.93 Outlays from discretionary
            balances........................          12          10          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          95         109         120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          97         110         121
    90.00 Outlays...........................          95         109         120
    ---------------------------------------------------------------------------

        Specific performance goals relating to the National Cemetery
    Administration are contained in VA's annual performance plan.

        The mission of the National Cemetery Administration is to honor
    veterans with a final resting place and lasting memorials that
    commemorate their service to our Nation. The National Cemetery
    Administration's vision is to provide a lasting tribute to our Nation's
    veterans by being mission-driven, results-oriented, and customer-
    focused. There are four related programs managed by the National
    Cemetery Administration including: (1) burying eligible veterans and
    family members in national cemeteries and maintaining the graves and
    their environs as national shrines; (2) providing aid to States in
    establishing, expanding, or improving State veteran cemeteries; (3)
    providing headstones and markers for the graves of eligible persons in
    national, State, and private cemeteries; and (4) providing presidential
    memorial certificates to family and friends of deceased veterans,
    recognizing the veteran's contribution and service to the Nation.

        The National Cemetery Administration also reflects budget
    information for the National Cemetery Gift Fund. Through this Trust
    Fund, the Secretary is authorized to accept gifts and bequests which are
    made for the purpose of beautifying national cemeteries or are
    determined to be beneficial to such cemeteries, or are made for the
    purpose of the operation, maintenance, or improvement of the National
    Memorial Cemetery of Arizona.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          44          48          50
    11.3    Other than full-time permanent..           8           9           9
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          52          57          59
    12.1  Civilian personnel benefits.......          14          16          17
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           4           4           5
    25.2  Other services....................          13          19          25
    26.0  Supplies and materials............           7           7           7
    31.0  Equipment.........................           5           5           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          97         110         121
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,399       1,466       1,499
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                                   Supply Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program-COGS-
            Merchandizing...................         586         721         777
    09.02 Reimbursable program-Other-
            Operations......................          38          47          50
    09.03 Reimbursable program-COGS-Printing
            and Publications................           6           7           8
    09.04 Reimbursable program-Other........           2           2           2
    09.05 Reimbursable program-Equipment-
            Procurement Services and
            Distribution....................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         635         780         840
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         152         188         188
    22.00 New budget authority (gross)......         671         780         840
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         823         968       1,028
    23.95 Total new obligations.............        -635        -780        -840
    24.40 Unobligated balance carried
            forward, end of year............         188         188         188
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         647         780         840
    69.10   Change in uncollected customer
              payments from Federal sources.          24
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         671         780         840
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         271         350         350
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................        -294        -318        -318
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         -23          32          32
    73.10 Total new obligations.............         635         780         840
    73.20 Total outlays (gross).............        -555        -780        -840
    74.00 Change in uncollected customer
            payments from Federal sources...         -24
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         350         350         350
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................        -318        -318        -318
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          32          32          32
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         555         780         840
    ----------------------------------------------------------------------------

    [[Page 915]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -647        -780        -840
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -92
    ---------------------------------------------------------------------------

        Under the provisions of 38 U.S.C. 8121, the Supply Fund is
    responsible for the operation and maintenance of a supply system for VA.
    The Supply Fund is an intragovernmental revolving fund without fiscal
    year limitations.

        Budget program.--The fund provides financial support for: (1) a
    National Acquisition Center or central contracting office; (2) the
    maintenance of field station inventories; (3) a service and distribution
    center; (4) a service and reclamation program; (5) a national
    prosthetics distribution center; and (6) an asset management service.

        Costs for the administration of supply activities at VA field
    stations are not financed by the Supply Fund. These costs are charged
    directly to applicable appropriations accounts.

        Financing.--Costs of supplies, equipment, and services acquired
    through the Supply Fund and Supply Fund operating costs are recovered
    through reimbursements from the VA appropriations and other Government
    agencies receiving goods and services. For 2002, Supply Fund sales are
    estimated to reach $715 million. Average inventory needed to support
    those sales will be $25 million.

        Operating results.--The Fund operated at a loss of $3 million in
    2000. The new total of retained earnings is $59 million. Operating
    expense as related to sales was 8 percent.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          21          24          27
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          22          25          28
    12.1  Civilian personnel benefits.......           4           5           6
    21.0  Travel and transportation of
            persons.........................           2           3           4
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           3           3
    24.0  Printing and reproduction.........           6           7           8
    25.1  Advisory and assistance services..         135         167         179
    26.0  Supplies and materials............         279         343         367
    31.0  Equipment.........................         184         226         244
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         635         780         840
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         358         378         382
    ---------------------------------------------------------------------------

                                 Franchise Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         159         120         155
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         159         120         155
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18           6           6
    22.00 New budget authority (gross)......         147         120         158
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         165         126         164
    23.95 Total new obligations.............        -159        -120        -155
    24.40 Unobligated balance carried
            forward, end of year............           6           6           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         147         120         158
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          16          39          41
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          16          39          41
    73.10 Total new obligations.............         159         120         155
    73.20 Total outlays (gross).............        -134        -120        -158
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          39          41          39
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          39          41          39
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         134         120         158
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -147        -120        -158
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -11
    ---------------------------------------------------------------------------

        VA was chosen as a pilot Franchise Fund agency under the Government
    Management and Reform Act, P.L. 103-356, of 1994. This budget extends
    through September 30, 2002, the authority under that Act for franchise
    fund pilots in agencies including VA. Established in 1997,
    administrative services included in the Franchise Fund are financed on a
    fee-for-service basis rather than through VA's General Operating
    Expenses appropriation. VA's Franchise Fund is a revolving fund used to
    supply common administrative services on the basis of services supplied.
    Enterprise Centers are the lines of business within the VA Franchise
    Fund and are expected to have net billings of about $156 million and
    employ 705 people, who were transferred from their parent organizations.

        The Franchise Fund concept is intended to increase competition for
    government administrative services resulting in lower costs and higher
    quality.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          34          33          39
    12.1  Civilian personnel benefits.......           7          13           8
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           3           4           4
    23.3  Communications, utilities, and
            miscellaneous charges...........          21          24          25
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................          76          42          74
    26.0  Supplies and materials............           2           1           2
    31.0  Equipment.........................          14           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         159         120         155
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         643         679         705
    ---------------------------------------------------------------------------

                          GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      36-243100  Fees and other charges for
        medical services....................           1           1           1

    [[Page 916]]

      36-247300  Contributions from military
        personnel, Veteran's Educational
        Assistance Act of 1984..............          99         296         211
      36-273330  GIF direct loans, Downward
        reestimates of subsidies............       1,064       1,420
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       1,164       1,717         212
    ---------------------------------------------------------------------------

                            Administrative Provisions

                          (including transfer of funds)

        [Sec. 101. Any appropriation for fiscal year 2001 for ``Compensation
    and pensions'', ``Readjustment benefits'', and ``Veterans insurance and
    indemnities'' may be transferred to any other of the mentioned
    appropriations.]
        Sec. [102] 101. Appropriations available to the Department of
    Veterans Affairs for fiscal year [2001] 2002 for salaries and expenses
    shall be available for services authorized by 5 U.S.C. 3109.
        Sec. [103] 102. No appropriations in this Act for the Department of
    Veterans Affairs (except the appropriations for ``Construction, major
    projects'', ``Construction, minor projects'', and the ``Parking
    revolving fund'') shall be available for the purchase of any site for or
    toward the construction of any new hospital or home.
        Sec. [104] 103. No appropriations in this Act for the Department of
    Veterans Affairs shall be available for hospitalization or examination
    of any persons (except beneficiaries entitled under the laws bestowing
    such benefits to veterans, and persons receiving such treatment under 5
    U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost
    is made to the ``Medical care'' account at such rates as may be fixed by
    the Secretary of Veterans Affairs.
        Sec. [105] 104. Appropriations available to the Department of
    Veterans Affairs for fiscal year [2001] 2002 for ``Compensation and
    pensions'', ``Readjustment benefits'', and ``Veterans insurance and
    indemnities'' shall be available for payment of prior year accrued
    obligations required to be recorded by law against the corresponding
    prior year accounts within the last quarter of fiscal year [2000] 2001.
        Sec. [106] 105. Appropriations accounts available to the Department
    of Veterans Affairs for fiscal year [2001] 2002 shall be available to
    pay prior year obligations of corresponding prior year appropriations
    accounts resulting from title X of the Competitive Equality Banking Act,
    Public Law 100-86, except that if such obligations are from trust fund
    accounts they shall be payable from ``Compensation and pensions''.
        Sec. [107] 106. Notwithstanding any other provision of law, during
    fiscal year [2001] 2002, the Secretary of Veterans Affairs shall, from
    the National Service Life Insurance Fund (38 U.S.C. 1920), the Veterans'
    Special Life Insurance Fund (38 U.S.C. 1923), and the United States
    Government Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General
    operating expenses'' account for the cost of administration of the
    insurance programs financed through those accounts: Provided, That
    reimbursement shall be made only from the surplus earnings accumulated
    in an insurance program in fiscal year [2001] 2002, that are available
    for dividends in that program after claims have been paid and
    actuarially determined reserves have been set aside: Provided further,
    That if the cost of administration of an insurance program exceeds the
    amount of surplus earnings accumulated in that program, reimbursement
    shall be made only to the extent of such surplus earnings: Provided
    further, That the Secretary shall determine the cost of administration
    for fiscal year [2001] 2002, which is properly allocable to the
    provision of each insurance program and to the provision of any total
    disability income insurance included in such insurance program.
        Sec. 107. Beginning in fiscal year 2002 and thereafter, funds
    available in any Department of Veterans Affairs appropriation or fund
    for salaries and other administrative expenses shall also be available
    to reimburse the Office of Resolution Management and the Office of
    Employment Discrimination Complaint Adjudication for all services
    provided at rates which will recover actual costs. Payments may be made
    in advance for services to be furnished, based on estimated costs.
    Amounts received shall be credited to the General Operating Expenses
    account for use by the office that provided the service. Total resources
    available to these offices for fiscal year 2002 shall not exceed
    $28,550,000 for the Office of Resolution Management and $2,383,000 for
    the Office of Employment and Discrimination Complaint Adjudication.
        [Sec. 108. Notwithstanding any other provision of law, collections
    authorized by the Veterans Millennium Health Care and Benefits Act
    (Public Law 106-117) and credited to the appropriate Department of
    Veterans Affairs accounts in fiscal year 2001, shall not be available
    for obligation or expenditure unless appropriation language making such
    funds available is enacted.]
        [Sec. 109. In accordance with section 1557 of title 31, United
    States Code, the following obligated balance shall be exempt from
    subchapter IV of chapter 15 of such title and shall remain available for
    expenditure until September 30, 2003: funds obligated by the Department
    of Veterans Affairs for a contract with the Institute for Clinical
    Research to study the application of artificial neural networks to the
    diagnosis and treatment of prostate cancer through the Cooperative DoD/
    VA Medical Research program from funds made available to the Department
    of Veterans Affairs by the Department of Defense Appropriations Act,
    1995 (Public Law 103-335) under the heading ``Research, Development,
    Test and Evaluation, Defense-Wide''.]
        [Sec. 110. As HR LINK$ will not be part of the Franchise Fund in
    fiscal year 2001, funds budgeted in customer accounts to purchase HR
    LINK$ services from the Franchise Fund shall be transferred to the
    General Administration portion of the ``General operating expenses''
    appropriation in the following amounts: $78,000 from the ``Office of
    Inspector General'', $358,000 from the ``National cemetery
    administration'', $1,106,000 from ``Medical care'', $84,000 from
    ``Medical administration and miscellaneous operating expenses'', and
    $38,000 shall be reprogrammed within the ``General operating expenses''
    appropriation from the Veterans Benefits Administration to General
    Administration for the same purpose.]
        [Sec. 111. Not to exceed $1,600,000 from the ``Medical care''
    appropriation shall be transferred to the ``General operating expenses''
    appropriation to fund personnel services costs of employees providing
    legal services and administrative support for the Office of General
    Counsel.]
        [Sec. 112. Not to exceed $1,200,000 may be transferred from the
    ``Medical care'' appropriation to the ``General operating expenses''
    appropriation to fund contracts and services in support of the Veterans
    Benefits Administration's Benefits Delivery Center, Systems Development
    Center, and Finance Center, located at the Department of Veterans
    Affairs Medical Center, Hines, Illinois.]
        [Sec. 113. Not to exceed $4,500,000 from the ``Construction, minor
    projects'' appropriation and not to exceed $2,000,000 from the ``Medical
    care'' appropriation may be transferred to and merged with the Parking
    Revolving Fund for surface parking lot projects.]
        [Sec. 114. Notwithstanding any other provision of this Act, none of
    the funds appropriated or otherwise made available in this Act for
    ``Medical care'' appropriations of the Department of Veterans Affairs
    may be obligated for the realignment of the health care delivery system
    in Veterans Integrated Service Network 12 (VISN 12) until 60 days after
    the Secretary of Veterans Affairs certifies that the Department has: (1)
    consulted with veterans organizations, medical school affiliates,
    employee representatives, State veterans and health associations, and
    other interested parties with respect to the realignment plan to be
    implemented; and (2) made available to the Congress and the public
    information from the consultations regarding possible impacts on the
    accessibility of veterans health care services to affected veterans.]
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                          TITLE IV--GENERAL PROVISIONS

        Sec. 401. Where appropriations in titles I, II, and III of this Act
    are expendable for travel expenses and no specific limitation has been
    placed thereon, the expenditures for such travel expenses may not exceed
    the amounts set forth therefore in the budget estimates submitted for
    the appropriations: Provided, That this provision does not apply to
    accounts that do not contain an object classification for travel:
    Provided further, That this section shall not apply to travel performed
    by uncompensated officials of local boards and appeal boards of the
    Selective Service System; to travel performed directly in connection
    with care and treatment of medical beneficiaries of the Department of
    Veterans Affairs; to travel performed in connection with major disasters
    or emergencies declared or determined by the President under the
    provisions of the Robert T. Stafford Disaster

    [[Page 917]]

    Relief and Emergency Assistance Act; to travel performed by the Offices
    of Inspector General in connection with audits and investigations; or to
    payments to interagency motor pools where separately set forth in the
    budget schedules: Provided further, That if appropriations in titles I,
    II, and III exceed the amounts set forth in budget estimates initially
    submitted for such appropriations, the expenditures for travel may
    correspondingly exceed the amounts therefore set forth in the estimates
    in the same proportion.
        Sec. 402. Appropriations and funds available for the administrative
    expenses of the Department of Housing and Urban Development and the
    Selective Service System shall be available in the current fiscal year
    for purchase of uniforms, or allowances therefor, as authorized by 5
    U.S.C. 5901-5902; hire of passenger motor vehicles; and services as
    authorized by 5 U.S.C. 3109.
        Sec. 403. Funds of the Department of Housing and Urban Development
    subject to the Government Corporation Control Act or section 402 of the
    Housing Act of 1950 shall be available, without regard to the
    limitations on administrative expenses, for legal services on a contract
    or fee basis, and for utilizing and making payment for services and
    facilities of Federal National Mortgage Association, Government National
    Mortgage Association, Federal Home Loan Mortgage Corporation, Federal
    Financing Bank, Federal Reserve banks or any member thereof, Federal
    Home Loan banks, and any insured bank within the meaning of the Federal
    Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831).
        Sec. 404. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
        Sec. 405. No funds appropriated by this Act may be expended--
            (1) pursuant to a certification of an officer or employee of the
        United States unless--
                (A) such certification is accompanied by, or is part of, a
            voucher or abstract which describes the payee or payees and the
            items or services for which such expenditure is being made; or
                (B) the expenditure of funds pursuant to such certification,
            and without such a voucher or abstract, is specifically
            authorized by law; and
            (2) unless such expenditure is subject to audit by the General
        Accounting Office or is specifically exempt by law from such audit.
        Sec. 406. None of the funds provided in this Act to any department
    or agency may be expended for the transportation of any officer or
    employee of such department or agency between their domicile and their
    place of employment, with the exception of any officer or employee
    authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
        Sec. 407. None of the funds provided in this Act may be used for
    payment, through grants or contracts, to recipients that do not share in
    the cost of conducting research resulting from proposals not
    specifically solicited by the Government: Provided, That the extent of
    cost sharing by the recipient shall reflect the mutuality of interest of
    the grantee or contractor and the Government in the research.
        Sec. 408. None of the funds in this Act may be used, directly or
    through grants, to pay or to provide reimbursement for payment of the
    salary of a consultant (whether retained by the Federal Government or a
    grantee) at more than the daily equivalent of the rate paid for level IV
    of the Executive Schedule, unless specifically authorized by law.
        Sec. 409. None of the funds provided in this Act shall be used to
    pay the expenses of, or otherwise compensate, non-Federal parties
    intervening in regulatory or adjudicatory proceedings. Nothing herein
    affects the authority of the Consumer Product Safety Commission pursuant
    to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et
    seq.).
        Sec. 410. Except as otherwise provided under existing law, or under
    an existing Executive Order issued pursuant to an existing law, the
    obligation or expenditure of any appropriation under this Act for
    contracts for any consulting service shall be limited to contracts which
    are: (1) a matter of public record and available for public inspection;
    and (2) thereafter included in a publicly available list of all
    contracts entered into within 24 months prior to the date on which the
    list is made available to the public and of all contracts on which
    performance has not been completed by such date. The list required by
    the preceding sentence shall be updated quarterly and shall include a
    narrative description of the work to be performed under each such
    contract.
        Sec. 411. Except as otherwise provided by law, no part of any
    appropriation contained in this Act shall be obligated or expended by
    any executive agency, as referred to in the Office of Federal
    Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for
    services unless such executive agency: (1) has awarded and entered into
    such contract in full compliance with such Act and the regulations
    promulgated thereunder; and (2) requires any report prepared pursuant to
    such contract, including plans, evaluations, studies, analyses and
    manuals, and any report prepared by the agency which is substantially
    derived from or substantially includes any report prepared pursuant to
    such contract, to contain information concerning: (A) the contract
    pursuant to which the report was prepared; and (B) the contractor who
    prepared the report pursuant to such contract.
        Sec. 412. Except as otherwise provided in section 406, none of the
    funds provided in this Act to any department or agency shall be
    obligated or expended to provide a personal cook, chauffeur, or other
    personal servants to any officer or employee of such department or
    agency.
        Sec. 413. None of the funds provided in this Act to any department
    or agency shall be obligated or expended to procure passenger
    automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per
    gallon average of less than 22 miles per gallon.
        Sec. 414. None of the funds appropriated in title I of this Act
    shall be used to enter into any new lease of real property if the
    estimated annual rental is more than $300,000 unless the Secretary
    submits, in writing, a report to the Committees on Appropriations of the
    Congress and a period of 30 days has expired following the date on which
    the report is received by the Committees on Appropriations.
        Sec. 415. (a) It is the sense of the Congress that, to the greatest
    extent practicable, all equipment and products purchased with funds made
    available in this Act should be American-made.
        (b) In providing financial assistance to, or entering into any
    contract with, any entity using funds made available in this Act, the
    head of each Federal agency, to the greatest extent practicable, shall
    provide to such entity a notice describing the statement made in
    subsection (a) by the Congress.
        Sec. 416. None of the funds appropriated in this Act may be used to
    implement any cap on reimbursements to grantees for indirect costs,
    except as published in Office of Management and Budget Circular A-21.
        Sec. 417. Such sums as may be necessary for fiscal year [2001] 2002
    pay raises for programs funded by this Act shall be absorbed within the
    levels appropriated in this Act.
        Sec. 418. None of the funds made available in this Act may be used
    for any program, project, or activity, when it is made known to the
    Federal entity or official to which the funds are made available that
    the program, project, or activity is not in compliance with any Federal
    law relating to risk assessment, the protection of private property
    rights, or unfunded mandates.
        Sec. 419. Corporations and agencies of the Department of Housing and
    Urban Development which are subject to the Government Corporation
    Control Act, as amended, are hereby authorized to make such
    expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make such contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Act as may be necessary in
    carrying out the programs set forth in the budget for [2001] 2002 for
    such corporation or agency except as hereinafter provided: Provided,
    That collections of these corporations and agencies may be used for new
    loan or mortgage purchase commitments only to the extent expressly
    provided for in this Act (unless such loans are in support of other
    forms of assistance provided for in this or prior appropriations Acts),
    except that this proviso shall not apply to the mortgage insurance or
    guaranty operations of these corporations, or where loans or mortgage
    purchases are necessary to protect the financial interest of the United
    States Government.
        [Sec. 420. Notwithstanding section 320(g) of the Federal Water
    Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant
    to authorization under such section for fiscal year 2001 may be used for
    implementing comprehensive conservation and management plans.]
        Sec. [421] 420. Notwithstanding any other provision of law, the term
    ``qualified student loan'' with respect to national service education
    awards shall mean any loan [made directly to a student by the Alaska
    Commission on Postsecondary Education,] determined by an institution of
    higher education to be necessary to cover a student's cost of attendance
    at such institution and made directly to a student

    [[Page 918]]

    by a state agency, in addition to other meanings under section 148(b)(7)
    of the National and Community Service Act.
        Sec. [422] 421. Unless otherwise provided for in this Act, no part
    of any appropriation for the Department of Housing and Urban Development
    shall be available for any activity in excess of amounts set forth in
    the budget estimates submitted to the Congress.
        [Sec. 423. None of the funds appropriated or otherwise made
    available by this Act shall be used to promulgate a final regulation to
    implement changes in the payment of pesticide tolerance processing fees
    as proposed at 64 Fed. Reg. 31040, or any similar proposals. The
    Environmental Protection Agency may proceed with the development of such
    a rule.]
        Sec. [424] 422. Except in the case of entities that are funded
    solely with Federal funds or any natural persons that are funded under
    this Act, none of the funds in this Act shall be used for the planning
    or execution of any program to pay the expenses of, or otherwise
    compensate, non-Federal parties to lobby or litigate in respect to
    adjudicatory proceedings funded in this Act. A chief executive officer
    of any entity receiving funds under this Act shall certify that none of
    these funds have been used to engage in the lobbying of the Federal
    Government or in litigation against the United States unless authorized
    under existing law.
        Sec. [425] 423. No part of any funds appropriated in this Act shall
    be used by an agency of the executive branch, other than for normal and
    recognized executive-legislative relationships, for publicity or
    propaganda purposes, and for the preparation, distribution or use of any
    kit, pamphlet, booklet, publication, radio, television or film
    presentation designed to support or defeat legislation pending before
    the Congress, except in presentation to the Congress itself.
        [Sec. 426. None of the funds provided in title II for technical
    assistance, training, or management improvements may be obligated or
    expended unless HUD provides to the Committees on Appropriations a
    description of each proposed activity and a detailed budget estimate of
    the costs associated with each activity as part of the Budget
    Justifications. For fiscal year 2001, HUD shall transmit this
    information to the Committees by December 1, 2000, for 30 days of
    review.]
        [Sec. 427. None of the funds made available in this Act may be used
    for the designation, or approval of the designation, of any area as an
    ozone nonattainment area under the Clean Air Act pursuant to the 8-hour
    national ambient air quality standard for ozone that was promulgated by
    the Environmental Protection Agency on July 18, 1997 (62 Fed. Reg.
    38,356, p. 38855) and remanded by the District of Columbia Court of
    Appeals on May 14, 1999, in the case, American Trucking Ass'ns. v. EPA
    (No. 97-1440, 1999 Westlaw 300618) prior to June 15, 2001 or final
    adjudication of this case by the Supreme Court of the United States,
    whichever occurs first.]
        [Sec. 428. Section 432 of Public Law 104-204 (110 Stat. 2874) is
    amended--
            (a) in subsection (c) by inserting ``or to restructure and
        improve the efficiency of the workforce'' after ``the National
        Aeronautics and Space Administration'' and before ``the
        Administrator'';
            (b) by deleting paragraph (4) of subsection (h) and inserting in
        lieu thereof--
                    ``(4) The provisions of subsections (1) and (3) of this
                section may be waived upon a determination by the
                Administrator that use of the incentive satisfactorily
                demonstrates downsizing or other restructuring within the
                Agency that would improve the efficiency of agency
                operations or contribute directly to evolving mission
                requirements.''
            (c) by deleting subsection (i) and inserting in lieu thereof--
        ``(i) Reports.--The Administrator shall submit a report on NASA's
    restructuring activities to the Committee on Appropriations of the House
    of Representatives and the Committee on Appropriations of the Senate not
    later than September 30, 2001. This report shall include--
            ``(1) an outline of a timetable for restructuring the workforce
        at NASA Headquarters and field Centers;
            ``(2) annual Full Time Equivalent (FTE) targets by broad
        occupational categories and a summary of how these targets reflect
        the respective missions of Headquarters and the field Centers;
            ``(3) a description of personnel initiatives, such as relocation
        assistance, early retirement incentives, and career transition
        assistance, which NASA will use to achieve personnel reductions or
        to rebalance the workforce; and
            ``(4) a description of efficiencies in operations achieved
        through the use of the voluntary separation incentive.''; and
            (d) in subsection (j), by deleting ``September 30, 2000'' and
        inserting in lieu thereof ``September 30, 2002''.]
        [Sec. 429. Section 70113(f) of title 49, United States Code, is
    amended by striking ``December 31, 2000'', and inserting ``December 31,
    2001''.]
        Sec. [430] 424. All Departments and agencies funded under this Act
    are encouraged, within the limits of the existing statutory authorities
    and funding, to expand their use of ``E-Commerce'' technologies and
    procedures in the conduct of their business practices and public service
    activities.
        [Sec. 431. Title III of the National Aeronautics and Space Act of
    1958, Public Law 85-568, is amended by adding the following new section
    at the end:
        ``Sec. 312. (a) Appropriations for the Administration for fiscal
    year 2002 and thereafter shall be made in three accounts, `Human space
    flight', `Science, aeronautics and technology', and an account for
    amounts appropriated for the necessary expenses of the Office of
    Inspector General. Appropriations shall remain available for 2 fiscal
    years. Each account shall include the planned full costs of the
    Administration's related activities.
        ``(b) To ensure the safe, timely, and successful accomplishment of
    Administration missions, the Administration may transfer amounts for
    Federal salaries and benefits; training, travel and awards; facility and
    related costs; information technology services; publishing services;
    science, engineering, fabricating and testing services; and other
    administrative services among accounts, as necessary.
        ``(c) The Administrator, in consultation with the Director of the
    Office of Management and Budget, shall determine what balances from the
    `Mission support' account are to be transferred to the `Human space
    flight' and `Science, aeronautics and technology' accounts. Such
    balances shall be transferred and merged with the `Human space flight'
    and `Science, aeronautics and technology' accounts, and remain available
    for the period of which originally appropriated.''.] (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)